Lockheed Martin's space systems unit is based in Denver. Harkin is a leading critic of wasteful defense spending. He says that the Pentagon paid for improvements on the buildings, depreciation, and repair and maintenance expenses under its defense contracts with Lockheed Martin. When the company sold the facilities, however, it allocated all proceeds to the land and none to the buildings, Harkin says. That meant the Pentagon could not receive any of the proceeds.
Regulations prohibit it from sharing in gains on land sales.
Harkin says Lockheed Martin considered the buildings worthless. That expense will be charged to its defense contracts, he says. Lockheed Martin maintains that the buildings had no value. Officials say various buyers wanted only the land and have torn down the buildings or plan to do so. The buyers are putting up new office facilities on the sites, Lockheed Martin says.