Pentagon Awards $872.6 Million in Patriot Missile Contracts

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On Thursday, the U.S. Department of Defense announced that it has awarded Lockheed Martin (NYSE: LMT ) a $755.1 million firm-fixed-price contract to produce Patriot PAC-3 missiles for foreign military sale, and to provide services related thereto.

DoD's announcement did not specify the state or states to which the missiles will be delivered. However, in recent years, multiple Mideast buyers (and not only Mideast buyers) have been named as being interested in buying the Patriot system, including Turkey, Saudi Arabia, and Kuwait.

In perhaps related news, Raytheon (NYSE: RTN ) was awarded three corollary contracts: a $72.6 million firm-fixed-price contract "for the modification of an existing contract to procure PATRIOT 3 Lot Spares in support of Foreign Military Sale;" a $22.7 million firm-fixed-price contract "for the modification of an existing contract to procure PATRIOT Technical Refresh Spares in support Foreign Military Sales;" and a $22.2 million firm-fixed-price contract "for the modification of an existing contract to procure PATRIOT Spare Parts in support of the Foreign Military Sales."

Lockheed's contract has an estimated completion date of July 31, 2015. The three Raytheon contracts are expected to be fulfilled by November 30, 2015, December 31, 2014, and September 30, 2014, respectively.

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