Boeing, Lockheed Reach Agreement

March 17, 1998 / 11:52 AM EST / AP

Boeing and Lockheed Martin have reached an agreement on how to compete in some areas while collaborating in others.

The agreement reached last month was worked out after Lockheed Martin announced a plan to merge with Northrop Grumman. The federal government has since expressed antitrust concerns about the merger.

Boeing, which now includes McDonnell Douglas and part of Rockwell, has complex ties with the other aerospace companies. They are competitors on some projects and subcontractors on others.

Boeing spokesman Larry McCracken said Boeing and Lockheed officials met Feb. 5 in Washington, D.C., and hammered out a list of principles to guide their future relationship.

Among other things, they agreed to protect each other's intellectual property, protect the ability of both to compete aggressively against each other, develop a process to resolve issues, and keep respective customers satisfied and provide best-value solutions.

Boeing supports the merger of Lockheed and Northrop. The deal would leave two major aerospace companies competing and cooperating on various military and space projects.

Lockheed Martin is headquartered in Bethesda, Maryland, and Northrop Grumman is based in Los Angeles.

Boeing and Lockheed are competing for the next-generation Joint Strike Fighter contract, while Boeing is a subcontractor to Lockheed on the F-22 fighter.

Northrop is a major supplier of parts for Boeing commercial jets and also for the C-17 transport built by the former McDonnell Douglas unit that is now part of Boeing. Northrop's Grumman division supplies electronics for a variety of Boeing programs, and Boeing produces rockets used by Lockheed and its competitors.