Lockheed's New Pentagon Awards Could Climb Past $140 Million

On Friday, the Department of Defense announced the award of two contracts, worth at least $13.1 million combined, to Lockheed Martin (NYSE: LMT  ) .

The smaller of the two contracts, classified as a foreign military sale for $6.5 million, calls on Lockheed to acquire an air defense system capability for the Royal Jordanian Air Force and purchase and install 22 "guided advanced technical rocket radios." Its completion date is July 2016.

The second contract is a bit larger -- and potentially much larger. Awarded through the Naval Sea Systems Command, this is a $6.6 million firm-fixed-price contract for machinery control systems (MCS) and engineering services for the DDG 51 Fleet Modernization Program. Lockheed will be asked to perform mechanical and electrical upgrades on guided missile destroyers of the DDG 51 class, automating many manual functions to reduce the size of crew needed to fight the ship.

Work on the contract is expected to be complete by June 2014, but the contract provides for the possibility that "options" will be exercised to perform additional work. If all options are exercised, the contract value could climb as high as $134.2 million.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2273122, ~/Articles/ArticleHandler.aspx, 8/30/2014 8:27:16 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement