Memo Says Shutdown of Brea Defense Contractor May Stall Missile Project

The recent closure of a small Brea defense contractor could stop production of a key missile program for up to six months, a Navy official said in an internal memo obtained Thursday by The Times.

The contractor, Micronics International, is the sole source of safety and arming devices, known as fuzes, for the troubled Phoenix missile. A Navy spokesman, however, said that the halt in the missile’s manufacture will not affect the Navy’s combat readiness.

Micronics’ Brea plant shut down on Aug. 29 and laid off 100 workers. As a result, no Phoenix missiles will be delivered to the Navy until as late as March, the memo says. Lack of fuzes will also hamper production of other weapons systems, including the Advanced Medium-Range Air-to-Air Missile, or AMRAAM, and the Sparrow air-to-air missile.

Fuzes are missile components that detonate warheads or prevent them from detonating prematurely. The Phoenix is the primary missile system for the F-14 Tomcat, the Navy’s key fighter aircraft.

The memo was written by Navy Vice Admiral J. B. Wilkinson, commander of the Naval Air Systems Command. It is addressed to the chief of naval operations and dated Sept. 7.

Wilkinson could not be reached for comment, but a Navy spokesman insisted Thursday that “our ships do have weapons” and said that the problem is “more of an inventory situation than a combat-readiness situation.”

“I don’t want you to have the idea that the Navy is out of bullets,” said the spokesman, who asked that his name not be used. “We want to dispel any kind of notion that the fleet is not ready. The fleet is ready.”

Reliability of $4,500 Parts Questioned

One Washington-based watchdog organization, however, was skeptical of the Navy’s claims.

“You can see how one small part can affect so many different systems,” said Danielle Brian-Bland, analyst at the Project on Military Procurement. “It appears, according to the Navy memo, that the problems with Micronics will have a big negative impact on our readiness.”

Micronics, a unit of La Jolla-based Precision Aerotech, shut down after the Defense Department refused delivery of missile fuzes in August because tests and record-keeping problems had raised questions about the reliability of the $4,500 parts.

Micronics has been under fire since March, 1988, when the Defense Department disclosed that it had begun a criminal investigation of the company. The investigation, which is continuing, focuses on the firm’s alleged use of untested and substandard parts in making fuzes.

Hughes Aircraft makes the Phoenix and the AMRAAM. For the Phoenix missile, the Navy bought the fuzes directly from Micronics and delivered them to Hughes. For the AMRAAM, Hughes dealt directly with Micronics.

“If a shortage of the devices develops, Hughes expects to continue work on major components of the Phoenix missiles, such as guidance and control sections that do not involve the fuzes,” said Michael Letson, a Hughes spokesman. “There are some fuzes in the supply pipeline and otherwise available. It depends on what arrangements can be made with the government regarding the use of these.”

For the AMRAAM, Letson said, Hughes is working to establish another source for fuzes and expects to take delivery on the devices in about four months.

Mixed Reaction

Rich Eichwald, a spokesman for McDonnell Aircraft in St. Louis, said the problems at Micronics should have “no immediate impact” on its F-15 or F/A-18 programs. The F-15 Eagle and F/A-18 Hornet are combat aircraft manufactured by McDonnell Douglas and designed to be equipped with the AMRAAM missile.

The Navy memo got a mixed reaction from defense industry watchers on Thursday.

A staff member of the House Energy & Commerce Committee called the memo “as significant as hell.” In contrast with the Navy’s past practices, he said, it was a sign that it is “at least headed in the right direction” regarding equipment safety.

“We’ve run into a lot of problems in quality control in Navy missiles,” he said. “Normally, the navy will accept anything. If it doesn’t meet the specs, they’ll waive the specs.”

Times staff writers David Olmos and Jim Schachter contributed to this report.