Satellite Contract Awarded to TRW
TRW Inc. said Thursday that its space and electronics unit in Redondo Beach has been picked to oversee development of a satellite-based ballistic missile tracking system that is expected to cost at least $6 billion over the next decade.
TRW was named the prime contractor for the Pentagon’s Space Based Infrared System Low program, with responsibility to build a constellation of satellites that would be able to track enemy intercontinental ballistic missiles.
TRW said it signed an initial contract worth $665 million with the Pentagon’s Missile Defense Agency. The agency has forwarded a budget request of $3.63 billion to Congress for the program for fiscal years 2003 through 2007. The system, which could include up to 24 satellites, is expected to eventually cost more than $6 billion.
The program is a key component of the nation’s missile defense effort, and the latest decision reinforces the region’s continuing dominance in the research and development of missile defense technologies.
TRW’s role in several major elements of missile defense is a key reason Northrop Grumman Corp. launched a $6.7-billion hostile bid for the company.
The Pentagon’s selection of a prime contractor is part of a broader effort to streamline the program, which has been under scrutiny for cost overruns and schedule delays. Before the reorganization, TRW and Raytheon Co.’s electronic unit in El Segundo were competing against Gilbert, Ariz.-based Spectrum Astro Inc. and Century City-based Northrop to build the system, but now all of them will be involved in some way with TRW having oversight authority.
TRW officials said it had not decided on the roles for the subcontractors, although Raytheon and Northrop will continue to compete on developing infrared sensors for satellites. Meanwhile, Northrop’s fight to acquire TRW moved into court as a U.S. federal judge issued a temporary restraining order delaying a key TRW shareholders meeting Monday to determine whether Northrop could proceed with its bid. The judge said shareholders should have more time to digest a sweetened offer and moved the meeting to May 3.
