Rockwell Wins Air Force Satellite Contract

Rockwell International Corp. on Monday beat out two rivals to win a lucrative Air Force contract to design and produce a new generation of Navstar Global Positioning System satellites.

Competitors for the contract, awarded in competitive bidding, were Lockheed Martin Corp. and Hughes Aircraft Co.’s satellite unit in El Segundo.

The pact ultimately could be worth $1.3 billion to Seal Beach-based Rockwell.

Rockwell could hire as many as 50 new workers at its satellite program, also in Seal Beach, by 1998 to handle the initial five-year, $382-million contract, the company said.

As many as 300 workers would be employed on the project, but most of them would be existing employees transferred in from other Rockwell programs, said Rockwell Space Systems spokesman Alan Buis.

The Air Force contract comes as Rockwell reportedly is in the midst of an effort to sell its government and military contracting operations. Company executives have refused to comment, but one Rockwell source said the deal would sweeten the marketability of the largely Southern California-based space and defense units, which last year posted revenue of $3.5 billion.

The new contract calls for Rockwell and its chief subcontractor, Computer Sciences Corp., to design and develop the updated satellite system and its operational software and to produce the first six satellites.

A global positioning system uses radio signals bounced from satellites to provide navigational data to military and civilian users anywhere in the world. The data can pinpoint a target to within 50 feet of its location.

GPS is already at work in navigational devices available to motorists, hikers and golfers. The government recently announced plans to make more accurate GPS signals available for civilian use.

Work is to begin immediately at Rockwell’s satellite facility and at Computer Science Corp.’s El Segundo plant, Buis said.

If the Air Force exercises options for up to 27 additional satellites and development of a new GPS channel for civilian use, the contract will stretch through 2012 and bring $1.3 billion in revenue to Rockwell and its various subcontractors.