The Boeing Co. and Lockheed Martin Corp. will combine the production, engineering, test and launch operations associated with U.S. government launches of Boeing Delta and Lockheed Martin Atlas rockets.

United Launch Alliance will be structured as a 50-50 joint venture combining services provided separately by Boeing Integrated Defense Systems’ Expendable Launch Systems division and Lockheed Martin’s Space Systems Co. The alliance is expected to provided an estimated $100 million to $150 million in cost savings to the government annually, the companies said.

The agreement is subject to government and regulatory approval and stipulates that the companies will immediately request an order from the U.S. District Court suspending all activity in the pending civil litigation related to previous competition for launches under the Air Force Evolved Expendable Launch Vehicle program. The companies also will dismiss all claims against each other.

“It has become increasingly clear that an alliance of launch capabilities is essential to meet the space communications, surveillance and reconnaissance needs of the 21^st century and to assure access to space,” Lockheed Martin Chairman, President and CEO Robert Stevens said in a prepared statement. “This combination will permit our national customers to achieve their mission objectives while reflecting current budget pressures and providing the government with full cost visibility.”