Federal Agents Search Orbital Sciences Offices

Orbital has assured the agency that the raids will not interfere with production of additional interceptors for the government's missile defense system, the military officer said.

The simultaneous raids in Dulles and Chandler, a Phoenix suburb, began Thursday morning while some of the company's top officials, including chairman, chief executive and co-founder David W. Thompson, were in Boston at the Banc of America Securities 2005 Aerospace and Defense Suppliers Conference.

Two Arizona newspapers reported that some agents raiding the Chandler facility worked for the Defense Criminal Investigative Service, an arm of the Defense Department's inspector general's office. A spokesman for the service did not return a call yesterday.

The Defense Criminal Investigative Service's duties include investigating terrorism, companies that use defective parts in weapons systems and equipment used by the military, and suspected cases of fraud, bribery and corruption, according to the agency's Web site.

Loudoun County sheriff's deputies assisted in the raid of the Dulles headquarters, said Kraig Troxell, a sheriff's department spokesman.

Thompson learned of the raids shortly after 7 a.m. Thursday, said Orbital spokesman Beneski, who was also in Boston at the time. Thompson later met privately with investors, then participated in a panel discussion called "Outlook for the Aerospace and Defense Supplier Sector." Thompson was upbeat about his company's future and made no mention of the raid during the panel discussion, according to a webcast of the event.

Beneski said the Dulles and Chandler facilities stayed open during the raid, but some parts of the company's operations were affected by the presence of federal agents.

Yesterday, he said, Orbital was "completely open for business."

Staff writers Bradley Graham and Jerry Markon contributed to this report.