THE CAMPAIGN FOR THE ACCOUNTABILITY OF AMERICAN BASES (CAAB)


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http://www.adn.com/business/story/4167244p-4181352c.html
Local firms rake in missile money
DELTA: Alaska companies gather $41.1 million in Boeing contracts.



By RICHARD RICHTMYER
Anchorage Daily News

(Published: October 15, 2003)

Alaska companies have gotten more than $41 million of the $54 million in contracts Boeing Co. has let so far for the missile-defense facilities being built near Delta, officials said Tuesday.

And as the military scrambles to meet a fall 2004 deadline to have the defense system operational, Boeing, the project's prime contractor, will be aiming to steer a larger percentage of the work to small disadvantaged businesses.

The Chicago-based aerospace company -- and its main subcontractor, Bechtel Group Inc. -- is in charge of building the silos and bringing together all the technology needed to make the system work.

The U.S. Army Corps of Engineers and Fluor Alaska also are involved, building other needed facilities and support structures. Spending on the project in Alaska has been estimated at roughly $250 million for last budget year.

"We don't want to exclude large businesses, because many times they will have the unique capabilities that we need," said Debbie Riddle, a Boeing supplier manager working on the missile-defense contract.

"But we are definitely aiming to, and required by law and by our company policy, to do more business with them," Riddle said.

Of the $41.1 million spent so far with Alaska suppliers, $12.1 million was spent with those that qualify as a small disadvantaged business, Riddle said.

The U.S. Small Business Administration offers assistance programs to businesses that are socially and economically disadvantaged -- such as those owned by women, minorities and disabled veterans -- setting aside portions of government contracts for them.

Riddle, in Anchorage this week to attend the IT Expo technology conference, which continues through today, said Boeing will be increasing the amount of work it lets to small disadvantaged businesses and encouraged Alaska businesses in that category to register with the company so it may let them know when contracts go out to bid.

To register as a Boeing supplier, Riddle said, businesses may go to the company's Web site at www.boeing.com, click on "doing business with Boeing," then fill out a series of online forms.

Though she couldn't estimate how much more work would be available, Riddle said Boeing will be purchasing a wide range of products and services as the missile project moves into its next phase of construction, including barge and truck transportation, lodging and meal service, office and test equipment and cold-weather gear.

Last December, President Bush ordered the military to bypass the "test bed" phase of the missile-defense project and move directly toward an operational phase, setting a deadline of Sept. 30, 2004, to have an operational system in place.

The defense system -- called Ground-based Midcourse Defense -- is designed to shoot down incoming ballistic missiles, intercepting them in their midcourse phase of flight about 140 miles above the earth.

Alaska plays a key role in the system, with four sites, including Fort Greely, where six interceptor missile launch silos are currently in the ground and will be operational by the president's Sept. 30 deadline, said Col. Kevin Norgaard, who's in charge of getting the Alaska sites ready. Another 10 silos are scheduled to be added to the site by 2005.

"We're making good progress," Norgaard said. "We had good weather last winter, and the guys have really been going this summer. I think we're on track."

Facilities also are under construction in the Aleutians at Eareckson Air Base, which will be used as a radar and communications station, and at Adak Island, which will serve as the primary support base for a new, floating advanced radar system known as X-band, or SBX.

The state's Kodiak Launch Complex also will be used to fire target missiles that will be used to test the new defense system, Norgaard said.

Daily News reporter Richard Richtmyer can be reached at rrichtmyer@adn.com or 257-4344.

 

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