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Lockheed Snags $174.7 Million Worth of Pentagon Contracts

On Friday, the Department of Defense awarded world-largest pure-play defense contractor Lockheed Martin (NYSE: LMT  ) four separate contracts worth a combined $173.7 million. Among these:

  • The biggest win went to Lockheed's Space Systems division, which will receive $105.9 million to provide "logistics support, legacy sustainment, and combined task force support" for the Space Based Infrared Systems project -- at least its fourth such award in the past three months. Work on this contract should be completed by Sept. 30, 2016.
  • Lockheed won a second, smaller award for $32.8 million to conduct "special studies, analyses, and reviews for the Littoral Combat Ship (LCS) program."¬†Lockheed will be focusing on solving "engineering and production challenges" and evaluating "cost and schedule risks" arising from efforts to cut costs on the program, which is currently overbudget. This contract has a March 2014 complete date.
  • The company's Mission Systems and Sensors division was awarded a sole source, cost-plus-award-fee contract modification worth $24 million, exercising an option to "support advanced concepts initiatives" for the Aegis Ballistic Missile Defense Program Office. This contract runs through Dec. 31.
  • Finally, and mysteriously, Lockheed won an $11 million Defense Advanced Research Projects Agency, or DARPA, award. An award for what is the question. DOD says only that "the statement of work for this effort is classified."

Read/Post Comments (8) | Recommend This Article (2)

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  • Report this Comment On March 16, 2013, at 9:35 PM, Hawks1986 wrote:

    LOL YAWN. wake me up when it's a billion or more--175M is chump change in this industry.

  • Report this Comment On March 16, 2013, at 9:40 PM, PictouGene wrote:

    The DARPA thingy is pretty obvious: an airplane company, Advanced R&D, SECRET or super SECRET: most likely it's to study and build a prototype cloaking device. for airplanes and possibly satellites.

  • Report this Comment On March 16, 2013, at 11:08 PM, Moonduster wrote:

    How can you ask Lockheed to review the costs of the LCS shipbuilding program when they are one of the prime contactors for that project?! That's like me telling my spouse, "you're spending too much, review your checkbook and habits".

  • Report this Comment On March 17, 2013, at 1:04 AM, TMFDitty wrote:

    Moonduster: These announcements are laconic in the extreme, and often difficult to parse. That said, my read on the LCS review is that DOD is asking LMT for its opinion: If we ask you to delay construction, build fewer ships, or otherwise cut costs, what is the downside for us?

  • Report this Comment On March 17, 2013, at 1:06 AM, TMFDitty wrote:

    PictouGene: I won't speculate. But if you've been following the contract announcements lately (and we have most of them for the past few months covered here on the Fool), each of SAIC, Raytheon, and Lockheed has won similar "classified" DARPA contracts in the past few days. They might be connected.

  • Report this Comment On March 17, 2013, at 2:13 AM, teelynn8242 wrote:

    Connected??? UMMM yeah. Do you not know what all of these companies do? They have been around for YEARS! They are defense and aerospace companies.

  • Report this Comment On March 17, 2013, at 9:59 AM, gemaqua wrote:

    They won a "bid"...tell me, who else was bidding? Why persist on the language that they won a bid, when no one but them gets the billions?

  • Report this Comment On March 17, 2013, at 1:36 PM, TMFDitty wrote:

    To clarify -- the *three DARPA contracts* awarded in the past three days may be connected. The language in the contract awards' announcements, and the timing of the awards, is similar.

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9/29/2016 4:02 PM
LMT $242.34 Down -3.41 -1.39%
Lockheed Martin CAPS Rating: ****