Lockheed Martin Corp. and Boeing Co.’s plans to combine rocket-launch operations will raise costs for taxpayers and stifle innovation, a government watchdog says.
Pending U.S. regulatory approval, the joint venture plans to provide launch services for the Department of Defense and some NASA missions. Lockheed and Boeing are the nation’s two largest defense contractors.
“This is not an entity that’s going to save taxpayers money,” said David Williams, vice president for policy for Citizens Against Government Waste. “It’s really going to create a monopoly.”
Lockheed and Boeing say their United Launch Alliance will save the government $100 million to $150 million.
“What we’re doing is creating a joint venture that will result in increased efficiencies, elimination of duplicating infrastructure capabilities, and result in overall reduction in cost for our U.S. government customers,” said Tom Greer, a spokesman for Lockheed.
Greer said the savings for the government will allow it to fund more innovation.
Citizens Against Government Waste, however, is urging the Air Force to consider additional bidders for satellites launched as part of the $32 billion Evolved Expendable Launch Vehicle program.
Citizens Against Government Waste is a Washington, D.C.-based nonprofit.
The launch alliance is to be based in Jefferson County.
