Raytheon and Lockheed reach a settlement on FAA work

Raytheon and Lockheed reach a settlement on FAA work

Rivals Lockheed Martin Corp. and Raytheon Co. have finally resolved their dispute over the Federal Aviation Administration's billion-dollar air traffic modernization program. FAA spokeswoman Tammy Jones called the outcome 'a win' for the agency.

Lockheed Martin will be prime contractor on the En Route Automation Modernization project, which is upgrading hardware and software at 20 FAA en route control centers. Raytheon will join the ERAM team as a subcontractor developing flight and surveillance data processing subsystems. Other ERAM subcontractors include Boeing Co., Computer Sciences Corp., Harris Corp. and Northrop Grumman Corp.

As a trade-off, Lockheed Martin will be a subcontractor on the Standard Terminal Automation Replacement System, for which Raytheon is prime contractor. Lockheed Martin will help provide terminal air traffic control technology for the STARS system through which controllers view the traffic as well as weather advisories.

ERAM has been under contention for some time. A Raytheon protest alleged in March that Lockheed Martin had an unfair advantage in winning an FAA solicitation. Raytheon had also protested in February 2001 after FAA conferred a sole-source award on Lockheed Martin, without competition, to upgrade ERAM. The FAA Office of Dispute Resolution for Acquisition upheld the protest.

'Raytheon is pleased to perform as a major subcontractor to Lockheed Martin for ERAM, and we are confident that the FAA will be getting a world-class team to modernize the world's most complex en route ATM system,' said Steve Teel, vice president of business development for Raytheon's command, control, communications and information systems unit.

Lockheed Martin air traffic management president Don Antonucci said FAA 'has made the best decision for the flying public.'

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