U.S. Air Force warns against satellite plans delay

WASHINGTON (Reuters) - The U.S. Air Force warned lawmakers on Friday against proposed budget cuts to a pair of multibillion-dollar military satellite programs being vied for by Lockheed Martin Corp and Boeing Co.

"The programs can't slip any more," said Major Monica Bland, an Air Force spokeswoman. "Continuity of funding is critical to controlling costs and schedules."

One of the programs at issue is a planned network of laser-linked communication satellites, known as Transformational Communications Satellites, or TSAT, valued at up to $26 billion over the next 10 years.

The other, expected to cost about $4 billion over seven years, is for enhanced Global Positioning System satellites to boost accuracy and resistance to jamming.

The Wall Street Journal reported on Friday that rivals Lockheed Martin and Boeing had been jockeying to extend their existing satellite lines -- the programs due to replaced by TSAT and the new system dubbed GPS III.

If lawmakers continue to funnel funds toward current versions of communications and navigation satellites, "that's a death spiral for both" new programs, Gary Payton, the Air Force's top space acquisition official, told the paper.

Bland, the spokeswoman, confirmed Payton had been quoted accurately. She said the quick pace of technological change was a factor that argued against any delays.

The Senate Appropriations Committee recommended this month cutting a Pentagon request for TSAT for the next fiscal year by more than 20 percent to $763.6 million. It voted to recommend cutting $150 million of the $587 million request for the next GPS network.

The proposed cuts await action by the full Senate. If approved, any differences with the House of Representatives must be ironed out before a bill can be sent to President George W. Bush for signing into law.

These are "major focus areas" for Lockheed Martin, said Stephen Tatum, a company spokesman. "We understand the importance of these critical systems and fully support our customer's need for any additional time necessary to ensure the programs get off to a successful start."

Boeing had no immediate comment.

(Reporting by Jim Wolf)