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http://leviathan.weblogs.com


http://www.latimes.com/news/state/updates/lat_spysat010318.htm


Massive Spy-Satellite Program to Cost Billions
Aerospace: Southland firms will get a major boost from top-secret, two-decade effort. 
Its scope could dwarf the Manhattan Project.


By PETER PAE, Times Staff Writer


     A team of Southern California aerospace companies is covertly recruiting 
engineers across the country for a new generation of spy satellites under what 
analysts believe is the largest intelligence-related contract ever.
     The supersecret project for the National Reconnaissance Office is estimated to be 
worth up to $25 billion over two decades, providing a major boost to the Southland's 
aerospace industry and solidifying the area's dominance of high-tech space research.
     Equipped with powerful telescopes and radar, the nation's newest eye in space is 
expected to form the backbone of U.S. intelligence for several decades, analysts said. 
The satellites will be farther out in space and harder to detect than the massive spy 
probes that currently orbit the Earth. They will also be able to fly over and take 
pictures of military compounds anywhere in the world, in darkness or through cloud 
cover, with far more frequency.
     Company officials are restricted from talking about the highly classified 
contract, but Roger Roberts, general manager of the Boeing Co. unit in Seal Beach 
overseeing the project, gave a hint of its scope.
     The endeavor will require 5,000 engineers, technicians and computer programmers 
over the next five years, and that will just be for the initial design and development 
of the satellites, he said.
     That figure doesn't include thousands more who will be required to assemble the 
satellites, most likely at Boeing Satellite Systems in El Segundo, and thousands of 
workers employed by hundreds of subcontractors and parts suppliers such as the 
1,900-employee Marconi Integrated Systems in San Diego. Sending the satellites into 
space will also require new rockets, which should also bolster the launch industry.
     The need for engineers has been so great that two months ago Boeing opened a 
recruitment office in Sunnyvale, where it is targeting both dot-com survivors and 
Lockheed Martin Corp. engineers who built many of the spy satellites now in orbit. 
After dominating that business since the 1950s, Lockheed lost the new contract to 
Boeing.
     John Pike, a Washington, D.C.-based military space consultant, believes that in 
all, the work could eventually mean jobs for at least 20,000 people in California.
     "Lots of kids will be sent to college, lots of swimming pools are going to get 
built and a lot of people will spend their career working on this project," Pike said.
     Still, most state officials said they know little about the project.
     "I don't think most people are aware of how big this is," said Mike Marando, 
spokesman for the California Technology, Trade and Commerce Agency. "We know 
California benefits substantially, but by exactly how much we just don't know."
     The National Reconnaissance Office hasn't helped. The enigmatic agency announced 
the contract in a three-paragraph news release posted on its bare-bones Web site 
little more than a year ago. The project is officially known as Future Imagery 
Architecture.
     Despite slowly opening itself up in recent years, the NRO still remains one of 
the most secretive government agencies. Even its innocuous logo--a space probe 
circling the globe--was a secret until 1994.
     Besides saying it awarded the contract to Boeing "to develop, provide launch 
integration and operate the nation's next generation of imagery reconnaissance 
satellites," not much else has been revealed.
     Virtually everything else about the contract--its dollar amount, the number of 
satellites to be built, who is doing what and where, and the capabilities of the 
satellite--is secret. Even the duration of the contract is deemed classified.
     "This program is so secret that most of the people who work on it won't have a 
good sense of what they are doing," said Loren Thompson, a defense analyst at the 
Arlington, Va.-based Lexington Institute.
     Still, aerospace analysts have been able to draw some conclusions through past 
reconnaissance programs based on public information gleaned from different sources, 
such as watching the size and frequency of rocket launches carrying secret spy 
satellites.
     Analysts generally agree that the number of satellites involved in the new 
program will be at least a dozen to two dozen, compared with roughly half a dozen spy 
satellites now in orbit. The new models are likely to be significantly smaller and 
cheaper than the current generation of spy satellites, which cost about $1 billion 
each, weigh 15 tons and can take up to 18 months to build.
     With a bigger constellation of satellites, the probes will be able to revisit and 
take pictures of an area more frequently than the current versions. The need is driven 
in part by inadequacies identified during the Persian Gulf War, when military 
commanders complained about intelligence photos arriving late.
     The new system would be less detectable by those being observed. For instance, 
U.S. intelligence officials were alarmed recently when they found a large contingent 
of North Korean troops lined up near the demilitarized zone with South Korea. Analysts 
believe that the North Koreans were able to move troops undetected by coordinating the 
operation with the orbit of a U.S. spy satellite.
     And with improvements in optical and radar technology, U.S. intelligence 
officials hope to place the satellites at a higher orbit so they can take pictures of 
a ground target for a longer period.
     Satellites can now "linger" over an area about 10 minutes. U.S. officials hope to 
double that span with the new probes. In all, the Federation of American Scientists 
believes the new satellites will be able to collect eight to 20 times more images than 
the current system.
     The agency now operates three optical satellites called KeyHole, which take 
photographic and infrared images, and three school-bus-size radar satellites known as 
Lacrosse, which can see through clouds and darkness, analysts said. Boeing is building 
both types of satellites under the contract.
     "They were talking about integrating new technology and building satellites that 
are one-third the size that NRO is used to," said Marco A. Caceres, a senior space 
analyst for the Teal Group in Fairfax, Va. "They're going to be cheaper, but there are 
also going to be a lot more of them."
     In an unusual moment of candor, an NRO spokesman confirmed last week that the 
satellites will be smaller and cheaper but more numerous than the current crop.
     "I can tell you that we plan to begin launching [the satellites] around . . . 
2005," said spokesman Art Haubold. "It's a multiyear effort that will provide a more 
capable but less costly means of filling the nation's imaging needs."
     He declined to specify the value of the contract, although he said, "We're 
talking about a big part of our business. That's all I can say."
     Boeing and other contractors--which would normally gloat--aren't talking, other 
than to confirm that they are part of the winning team. Besides Boeing, which will 
oversee the contract and build the satellites, the other main companies include 
Raytheon Corp., Eastman Kodak Co. and Harris Corp. Analysts believe that Aerospace 
Corp., a government-funded research operation in El Segundo, drew up the blueprints 
for the new satellites.
     Although the firms declined to discuss the contract, workers at Raytheon in El 
Segundo are probably developing the radar-imaging equipment as well as the 
ground-based controls for the satellites.
     Meanwhile, Rochester, N.Y.-based Eastman Kodak is working on processing the 
images captured by the satellites. The role of Harris Corp., a Florida-based maker of 
telecommunications components and provider of support services to the Defense 
Department, is unclear.
     "I can only confirm that we are a contractor," said Mark Day, a spokesman for 
Raytheon's Electronic Systems unit in El Segundo. Raytheon and Boeing's operations in 
El Segundo both trace their origins to the former Hughes Aircraft Co., a longtime 
handler of top-secret programs during the Cold War.
     The NRO, created in 1960 to build and operate spy satellites, has an annual 
budget of at least $6 billion, exceeding yearly spending of either the Central 
Intelligence Agency or the National Security Agency.
     Pike estimates that the new contract accounts for about $1 billion of the annual 
budget and has a lifetime of at least 20 years. After factoring in about $5 billion 
for design and development, he believes the total worth of the contract to be as much 
as $25 billion, which includes building the satellites and maintaining them. In 
comparison, the Manhattan Project to develop the atomic bomb, which at one time 
employed as many as 125,000 people, cost the U.S. $20 billion after adjustment for 
inflation.
     The NRO program "will be the most expensive program in the history of the 
intelligence community," the Federation of American Scientists recently concluded.
     Much of that expense will be incurred in the South Bay, an area represented by 
Rep. Jane Harman (D-Rolling Hills), a member of the House Permanent Select Committee 
on Intelligence, which last week received a classified briefing about the project from 
the NRO.
     "I used to say that the area was the aerospace center of the world," Harman said. 
"I would now say it is the center of the world for space-based intelligence."
     Since the 1950s, U.S. spy satellites had mostly been designed and built in 
Northern California at Lockheed Martin's massive 275-acre Sunnyvale facility, which 
during its heyday employed more than 30,000 people.
     It was in Sunnyvale that the first spy satellites, known as Corona, were built. 
Although it made its last flight in 1972, the project's existence was revealed and 
declassified only by a special order of President Bill Clinton about 25 years later.
     Declassified documents say the NRO launched 145 Corona satellites, each of which 
flew a few days at a time taking photographs with six- to 10-foot resolutions, 
compared with resolution of approximately six inches on current satellites.
     Instead of transmitting the images to Earth, Corona capsules were allowed to 
free-fall and be snatched up in midair by a C-119 Flying Boxcar, often after several 
attempts. The capsules usually contained hundreds of pounds of film.
     In late 1999, the NRO stunned the industry and awarded the contract to build the 
next generation of spy satellites to a Boeing-led team. The competition, which took 
three years, was considered among the fiercest in recent memory, analysts said.
     "I wish I can tell you how we won the contract. It's a story worth telling your 
grandchildren," said James Albaugh, president of Boeing's space and communications 
business.
     In aerospace, Boeing's coup was considered a huge turning point that reflected a 
shift in fortunes of the world's top two defense contractors. Lockheed shares fell for 
weeks after the news was made public. "This was the most serious loss for Lockheed in 
a decade," Thompson said. "This was a core business for Lockheed for decades. It was a 
large part of the reason why Sunnyvale existed at all."
     The aftermath is visible at Lockheed's Sunnyvale facility; the massive structure 
in which the first spy satellite took shape was recently torn down for an Internet 
firm. Nearby, Boeing opened a recruiting office to handle hundreds of applications 
weekly from Lockheed engineers drawn by a newspaper ad.
     "Stars. Sunsets. Satellites. Southern California has it all," it said, somewhat 
boastfully.

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