U.S. spy satellite declared loss, to drop from orbit

One official said Germany in June launched TerraSAR-X, a sophisticated new satellite armed with a synthetic aperture radar that analysts say marks the start of a new level of quality in the mapping of the earth.

Canada is also working on this technology.

The NRO, which designs, builds and operates reconnaissance satellites for the U.S. military and intelligence communities, declined to comment, as did Lockheed.

RUNAWAY COSTS, DELAYS

The failure of the L-21 comes amid a spate of issues with other NRO and military satellites, and as the Pentagon tries to rein in runaway costs and schedule delays on space programs.

NRO Director Donald Kerr, nominated to be principal deputy director of national intelligence, told the Senate Intelligence Committee on Wednesday that he recommended ending two multibillion-dollar classified intelligence programs because they could not be successfully completed.

Kerr said one of the contractors had been put on "a watch list," and could only bid on new work if granted a waiver.

He did not name the programs or companies involved, but said he told the contractor on the list it could be removed only when it showed that it could build hardware that worked.

Analysts and one official familiar with the issue said Kerr was referring to a major revamp of the Future Imagery Architecture program, initially run by Boeing Co, and a Lockheed satellite program dubbed "Misty." The official said the company on the watchlist was Boeing.