Lockheed Martin Corp.’s troubled project to build a next-generation spy plane hit another delay Tuesday after the U.S. Army said it needed an additional 30 days to decide the fate of the program.
The decision had been due today, but the Army said it needed more time to review a revised proposal Lockheed submitted in November that addressed concerns raised by Army officials.
Further complicating matters, Northrop Grumman Corp. – which Lockheed beat to win the contract in August 2004 – said Tuesday it may protest if Lockheed is allowed to proceed under revised plans.
About 250 employees at Lockheed’s Deer Creek plant in Jefferson County are developing the key electronic components of the plane, which will be used primarily to intercept enemy radio and radar transmissions.
The project, called Aerial Common Sensor, is potentially worth $6 billion to $8 billion over 20 years.
The Army ordered Lockheed to stop working on the project in September after determining that the aircraft Lockheed planned to use couldn’t carry all of the required equipment. It gave the company 60 days to present a revised plan.
Lockheed, based in Bethesda, Md., presented that plan – which included using a larger aircraft – to Army officials Nov. 14.
If the Army chooses to switch to a larger aircraft, Northrop may argue that the Army should open the contract for new bids.
“Any significant change to the program outside of the scope of the information that was requested in the proposal may be protestable,” Northrop spokesman Randy Belote said. “We would certainly review our options related to that decision.”
Lockheed spokeswoman Suzanne Smith said the company remains committed to the project.
Richard Aboulafia, an aerospace analyst with Teal Group Corp., said the Army may have to scrap the project altogether because of budget concerns and problems with the aircraft size.
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.cam.
