Citizens Against Government Waste (CAGW) has recommended to the U.S. Air Force that it cease granting sole-source contracts for heavy satellite launches to United Launch Alliance (ULA), a joint venture between Boeing and Lockheed Martin.

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"The structure slams the door on any possible competition," says CAGW president, Thomas A. Schatz. "The ULA locks up all contracts, ensuring high costs for taxpayers and stifling innovation."

Regulators are expected to rule on the merger shortly and the companies are now jointly negotiating for the third round of launches under the $32 billion Evolved Expendable Launch Vehicle (EELV) program, which will cover 23 missions lasting through 2011 and beyond. Despite the cost overruns, schedule delays, and scandals that are said to have plagued EELV, there is no legal requirement for the Air Force to consider additional bidders that may emerge before 2011.

A July 12, 2005 report from the Government Accountability Office, a non-partisan organization, referred to the DOD's space system acquisition efforts as "dismal." EELV unit cost has grown 81%. During the first round of bidding seven years go, the report said that Boeing obtained proprietary information from Lockheed Martin and the resulting investigation and suspension cost taxpayers $230 million.

The House version of the fiscal 2006 Defense Appropriations bill included language requiring future EELV contracts to be negotiated on an annual basis because "multiyear contracts are no longer in the interests of taxpayers." CAGW is the nation's largest non-partisan, non-profit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government. It was created in 1984, following the release of the Grace Report, to increase the efficiency of the Federal Government and to press for multiple sources in contracting and procurement.

Essentially a taxpayer and citizen-based organization, CAGW is funded 75% by individuals and 25% by corporations.