Boeing, Lockheed to Both Get Rocket Work

Boeing Co. and Lockheed Martin Corp. will both build new rockets for the U.S. Air Force, as the service has discarded its plan to select just one producer. Col. Richard McKinney, director of the program known as the Evolved Expendable Launch Vehicle, said the U.S. Defense Department’s civilian leadership has approved changing the program strategy. The EELV program was set up for the Air Force to be the primary customer, with rockets also being produced for commercial users. That has now been reversed. McKinney said the decision to keep both Boeing and Lockheed Martin was made because future commercial demand--which could account for the majority of EELV launches--will be significantly higher than expected. The roughly $1.3 billion that was to have gone to one of the firms will now be divided between them. The first launch is expected in 2001. Lockheed Martin and the former McDonnell Douglas Corp. were selected in December to compete for the rocket’s production work. Seattle-based Boeing bought McDonnell Douglas earlier this year.