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<strong>Space</strong> and Intelligence Systems already has delivered three WGS<br />

satellites and has three more in production.<br />

http://boxer.senate.gov/en/press/photos.cfm?start=141<br />

“We have completed all the non-recurring engineering on the<br />

program, and if a procurement for a recurrent satellite was<br />

conducted on a commercial basis, we could bring down the cost<br />

further,” Craig R. Cooning, general manager of Boeing <strong>Space</strong> and<br />

Intelligence Systems, said. “It seems to us that this is the<br />

moment to be taking advantage of those savings. And do you<br />

know of any operator that has Ka- and Ku-band rights in the<br />

region? I don’t.” Cooning said that to bring down the cost of a<br />

WGS satellite as far as possible, the Air Force would need to<br />

waive many of the usual procedures it imposes on industry,<br />

WGS satellite being built. Credit: Boeing photo<br />

A seventh spacecraft and long-lead components for an eighth<br />

were part of a $1.1 billion contract with the U.S. Air Force,<br />

announced Sept. 9. The contract, which includes launches as well<br />

as an option for a ninth WGS, does not spell out the cost of<br />

building another WGS satellite that is nearly identical to the<br />

previous six. At the same time as it has been preparing the WGS<br />

follow-on contract, U.S. defense authorities have been trying to<br />

sell the U.S. Congress on a novel idea for securing satellite<br />

bandwidth for the U.S. Central Command in the Middle East,<br />

South and Central Asia and North Africa. The U.S. Defense<br />

Information Systems Agency (DISA) has argued that its<br />

which add considerable costs to the program and which, he said,<br />

are not needed given the maturity of the WGS system. Handling<br />

a WGS procurement at this point in the program, and adopting<br />

commercial procedures with lighter customer oversight, could<br />

end up with a satellite that costs less than $300 million. “How<br />

much do you think it would cost to purchase a satellite with<br />

WGS’s capabilities on the commercial market?” Cooning asked.<br />

Boeing and Bethesda, Md.-based Lockheed Martin have been<br />

proposing that, to accommodate the U.S. defense budget to<br />

leaner times, defense procurement adopt practices from the<br />

commercial sector including leaner program management and<br />

bulk purchases.<br />

Advanced Satcom Services in a Single Theater (ASSIST)<br />

proposal represents a smarter way for the U.S. military to<br />

purchase satellite capacity. Instead of building its own satellite,<br />

the Defense Department would order a commercial satellite<br />

operator to provide a certain amount of Ku- and Ka-band<br />

capacity in the region over the 15-year life of a satellite for $440<br />

million. Commercial satellite operators have said none of them<br />

has access to sufficient Ka- or Ku-band frequency in the region<br />

to give DISA what it wants, especially given that DISA has asked<br />

that the satellite bandwidth be available by December 2014. That<br />

alone may have made ASSIST a nonstarter. But Boeing officials<br />

said even the economics of ASSIST can be bested by the<br />

at 50th<br />

http://www.satnews.com/cgi-bin/story.cgi?number=1519546951&method=print#<br />

Boeing is also turning greater attention to the commercial<br />

satellite market to compensate at least partially for the expected<br />

downturn in defense orders. Cooning said that five years ago,<br />

purchase of an identical WGS satellite.<br />

Cooning<br />

Boeing’s commercial satellite business represented perhaps 10<br />

percent of its revenue. In 2011 that figure is expected to be<br />

about 16 percent, rising to 26 percent in 2012 as the company<br />

digests multi-satellite orders for its newly designed 702b satellite<br />

platform. Lockheed Martin officials said here that they too are<br />

taking a fresh look at the commercial satellite market, but the<br />

company has not yet been as aggressive as Boeing in pursuing<br />

commercial orders.<br />

19

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