Air Force Pares Contracts in Cost-Reduction Move
February 12, 2012
Exelis, Computer Sciences Corp. and Raytheon risk losing $3 billion in rocket-launch revenue during the next decade as the U.S. Air Force consolidates contracts to reduce costs.
The Air Force plans to save at least 5 percent by eliminating redundancies in three maintenance and engineering contracts, Christina Sukach, a spokeswoman for the Air Force Space Command, said in an e-mail.
McLean-based Exelis may have the most at stake. The company has received $1.4 billion under its contract since 2001, according to government data. Boeing, Lockheed Martin and Bechtel plan to challenge Exelis and the other incumbents for the work, according to a notice the Air Force posted online Jan. 20.