Union Tribune

June 26, 2002 

Boeing unit wins $2 billion U.S. pact


WASHINGTON A Southern California-based Boeing unit has
won a $2 billion contract to provide a new generation of radios
to the U.S. military.

Industry analysts estimate the contract for the Joint Tactical
Radio System could grow to a $7 billion international program
for Boeing's space and communications unit headquartered in
Seal Beach. Most of the work is expected to be performed in
Anaheim and would run until 2008, the Pentagon announced
late Monday. 

The radios would handle different frequencies and encryption
programs better than existing radios, making it easier for mixed
forces to talk to each other during combat operations.

The radios also will be capable of transferring voice, data and
video communications over the military's future high capacity
wireless network, enabling the system to link up with nearly any
type of communications equipment in the military's inventory,
according to TRW Inc., which is part of the Boeing team on the

The initial award is for a $73.7 million increment of an $856.5
million contract to develop and produce radios for Army and
Marine ground-combat forces and some Air Force air
controllers. If all options were exercised, this phase of the
contract would increase to an estimated $2 billion. But the
program could grow substantially with expected buys from the
Navy and Air Force for radios for warships and aircraft.

The U.S. military also is encouraging American allies to adopt
similar radios to reduce communication problems during
multinational operations. That could mean additional billions of
dollars in work.

The Army, which is managing the multiservice program,
selected a Boeing-led team over a rival group led by Raytheon.
Members of the Boeing team include Rockwell Collins Inc., BAE
Systems and TRW.

TRW said work will be performed at three of its California
facilities, including one in San Diego.

Boeing also is competing with Raytheon on an Air
Force-managed communications program that would use
satellites to link aircraft and ground stations in a global network.
The contract decision is expected early in July, a Boeing
spokeswoman said.