Today's Top Money Stories • Summer travel hitting record pace - • Cheap AIDS pill as good as pricey brands - • Nortel stock sinks after negative report - • Mutual fund returns edge up slightly in second quarter - • Kellogg's to stop shipment of superhero toy - Add USATODAY.com headlines to your Web site
Air Force punishes Boeing by taking 7 contracts By Edward Iwata, USA TODAY Handing down some of the harshest penalties ever against a defense contractor, the U.S. Air Force on Thursday stripped Boeing (BA) of seven rocket-launch contracts and also indefinitely suspended Boeing's rocket defense units from competing for military contracts. The penalties cap a yearlong Air Force probe into allegations that Boeing, the nation's No. 2 defense contractor after Lockheed Martin, used thousands of pages of stolen Lockheed documents in 1998 to beat its rival for contracts to build a military satellite-launch rocket. Boeing, which had won 14 military contracts to build the Delta IV satellite rocket system, must hand over seven of the contracts, worth about $700 million, to Lockheed, the Air Force said. Both companies now have 14 rocket contracts each. The Air Force suspended indefinitely three Boeing units: Boeing Launch Systems, Boeing Launch Services and the Delta rocket program office. Also suspended by the Air Force were three former Boeing employees allegedly involved in the scandal: William Erskine, Kenneth Branch and Larry Satchell. All worked on Boeing's rocket contracts. Last month, a federal grand jury in Los Angeles indicted Branch and Erskine for misusing trade secrets during the 1998 bidding for the rocket contracts. Boeing fired the two in 1999. Branch, a former Lockheed engineer, was recruited in 1996 by Boeing engineer Erskine to bring proprietary Lockheed documents to Boeing in exchange for a high-salary job, according to the Justice Department. All of the suspensions will be lifted when Boeing shows it has corrected the problems that led to the alleged use of Lockheed's documents, according to Air Force Maj. Angela Billings. In a statement, Air Force Undersecretary Peter Teets said: "We do not tolerate breaches of procurement integrity, and we hold industry accountable for the actions of their employees." Boeing CEO Phil Condit apologized Thursday, saying in a statement that "we are extremely disappointed by the circumstances" and "we understand the U.S. Air Force's position that unethical behavior will not be tolerated." He said Boeing will conduct a work "stand-down" on July 30 of all 78,000 employees in its Integrated Defense Systems business unit to discuss the suspension and receive ethics training. "We want to ensure that Boeing will never again have to face such criticism," Condit said. Air Force officials said Thursday they will award Lockheed three contracts, valued at $250 million, for new rockets to be launched at Vandenberg Air Force Base in California. Contributing: Wire reports
'''December 13, 2004'''

CAPE CANAVERAL, Florida - The first new heavy lift space vehicle in a generation is cleared to launch from Cape Canaveral Air Force Station. The Boeing '''Delta IV Heavy''' has missed launch opportunities three days in a row (starting Friday, December 12) due to minor technical difficulties. It is now scheduled to launch Dec. 20 or 21 from pad SLC-37B.

The '''Delta 4''' was developed as part of the U.S Air Force's ''Evolved Expendable Launch Vehicle'' program to reduce costs and improve reliability.  The basic design is a two stage, cryogenic LOx/LH2 rocket.  Strap-on boosters may be added to increase lift capacity.  

Two major obstacles have plagued the project in recent years; a bidding scandal which cost Boeing a large portion of the military satellite launch business for which it was competing, and a downturn in commercial satellite launches in 2001.

The ''Heavy'' variant of the Delta 4 rocket can place 13,100 kg (28,950 Lb) into geostationary transfer orbit, greater than any other current rocket. Two additional first stage cores are used as strap-on boosters for this configuration. Their rated thrust is 2,900,000 N (656,000 lb) each. 

Delta 4's main engine, the RS68, is the most powerful hydrogen/liquid oxygen engine in the world, approximately three times as powerful as the Ariane 5 Vulcain HM60. Its design sacrifices efficiency for increased reliability and lower cost: rated specific impulse is 365s at sea level and 410s in a vacuum. The second stage engine, Pratt and Whitney's RL-10B-2, has a specific impulse of 462s.

The primary market for this launcher will be classified spy satellites for the US intelligence community. Most of these satellites were previously launched on the Titan 4, which has since been retired. The Delta 4 Heavy's published launch cost is $170 million, compared to the Titan 4's $400 million (1999 dollars).

Delta 4 Heavy's maiden launch is a demonstration and will carry a dummy load and two nano-satellites. The main payload, dubbed ''DemoSat'' is a 6020 kg (13271 lb) mass designed to simulate the dynamic and initial properties of a real satellite.  Its design consists of large brass rods, intended to fully burn up on reentry.

The two nano-satellites are part of the US Department of Defense ''Nanosat-2 Program'', and built by students from New Mexico State University, Arizona State University, and the University of Colorado at Boulder.