U.S. Intelligence Plan Could Benefit Va. Satellite Imaging Firm

By Mike Musgrove
Washington Post Staff Writer

Thursday, April 9, 2009; A14

http://www.washingtonpost.com/wp-dyn/content/article/2009/04/08/AR2009040804090_pf.html


National Intelligence Director Dennis C. Blair announced this week that the 
United States plans to rely more on the private sector for its satellite 
mapping and reconnaissance needs, a potential boon to Washington area 
imagery company GeoEye.

"When it comes to supporting our military forces and the safety of 
Americans, we cannot afford any gaps in collection," Blair said in a 
statement Tuesday. The National Reconnaissance Office will develop, build 
and operate a new type of intelligence-gathering satellite, while in the 
interim the Department of Defense and U.S. intelligence community will 
supplement and back up its current satellite imagery projects with products 
from commercial suppliers.

Two commercial satellite imagery firms are best positioned to benefit: 
Dulles-based GeoEye and Colorado firm DigitalGlobe. According to one 
industry analyst's calculations, the new policy could amount to about $750 
million for each company over the next five years.

Matthew O'Connell, GeoEye president and chief executive, said the 
announcement "puts a little wind in our sails." The company's latest 
satellite went into commission in February, and a more advanced one is on 
track to launch in 2012.

GeoEye's recently launched satellite, GeoEye-1, orbits the earth in 98 
minutes and can capture images from an altitude of 423 miles with high 
enough resolution to show home plate on a baseball field. O'Connell said 
the company's next satellite is slated to provide even higher resolution.

"Given the turmoil in the credit markets, this kind of announcement makes 
us cautiously optimistic that we should go full-speed ahead and get that up 
in the air if our nation needs it," he said.

Blair's announcement observed that commercially available products could be 
available much sooner than systems developed by the National Reconnaissance 
Office because they tend to be less complex than the systems the government 
builds.

"It would be fair to characterize [the new policy] as a break with what was 
going on under the Bush administration," said Edward A. Jurkevics, 
principal at Chesapeake Analytics, an Arlington financial analysis firm.

A previous National Reconnaissance Office program to build a cutting-edge 
satellite program, called Future Imagery Architecture, was canceled three 
years ago after it missed deadlines and soared billions of dollars over 
budget -- a debacle that Blair appeared to refer to in his statement.

"We are living with the consequences of past mistakes in acquisition 
strategy, and we cannot afford to do so again," he said.


=================================================
George Antunes                    Voice (713) 743-3923
Associate Professor               Fax   (713) 743-3927
Political Science                    Internet: antunes at uh dot edu
University of Houston
Houston, TX 77204-3011         

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