Boeing realigns government biz

Boeing Co. has merged its communications, defense, government, intelligence and space capabilities into a $23 billion business.

The company announced the creation of Integrated Defense Systems July 10 at a news conference in Chicago.

Jim Albaugh will serve as president and chief executive officer of the venture, which will have headquarters in St. Louis and 78,600 employees worldwide. Albaugh previously led Boeing's space and communications unit.

The reorganization, which is effective immediately, follows recent Boeing contract wins that include the Army's $856 million Joint Tactical Radio System and $154 million Future Combat System (teamed with Science Applications International Corp.).

"These wins validated our network-centric strategy of integrating the various elements of the battlespace to provide real-time connectivity and situational awareness," Boeing chairman and CEO Phil Condit said in a news release. "In this new organization we have assembled the necessary communications, intelligence, surveillance and reconnaissance capabilities as well as platform knowledge to be the pre-eminent government systems company in the world."

The Integrated Defense Systems organization will provide integrated battlespace solutions for military services, according to the release.

"Integrated solutions — is the direction modern defense systems are moving," Condit said. "The platforms our government customers are buying today will be more and more integrated in the future."