Pentagon suspends 1 billion dollars worth of Boeing contracts

WASHINGTON (AFP) Jul 24, 2003
The Pentagon said Thursday it was revoking one billion dollars worth of contracts awarded to Boeing Co. following allegations its employees stole trade secrets from a rival defense contractor.

The contracts will be reassigned to one of Boeing's rivals, US Air Force Under Secretary Peter Teets told reporters.

The move follows allegations that certain Boeing employees obtained proprietary information from competitor Lockheed Martin Corp. during the bidding process for a 1998 contract to launch military satellites.

"We are extremely disappointed by the circumstances that prompted our customer's action, but we understand the US Air Force's position that unethical behavior will not be tolerated," said Boeing chairman and chief executive officer Phil Condit in a statement.

SPACE.WIRE