The Department of Defense awarded nine separate defense contracts Tuesday, worth $1.04 billion in total. The big winner of the day was Lockheed Martin (NYSE:LMT), which took home 33% of the contract wins -- and 84% of the funds on offer.
Lockheed's headline win of the day was a massive $698 million fixed-price-incentive, firm target, advanced acquisition contract to begin procuring long-lead parts, materials, and components needed to build 57 Low-Rate Initial Production, or LRIP, Lot IX F-35 Lightning II Joint Strike Fighters. These will include:
- 26 F-35A Conventional Takeoff and Landing aircraft, or CTOLs, for the U.S. Air Force.
- Six F-35B Short Takeoff Vertical Landing aircraft, or STOVLs, for the U.S. Marine Corps.
- Two F-35C Carrier Variant aircraft for the U.S. Navy.
- Seven F-35A CTOL aircraft for Israel.
- Six F-35A CTOL aircraft for Norway.
- Six F-35B STOVL for the United Kingdom.
- Two CTOL aircraft for Japan.
- One F-35A CTOL for Italy.
- One F-35B STOVL aircraft for Italy.
These funds should cover Lockheed's work on LRIP Lot IX through May 2015.
Lockheed also won a $93 million option exercise to fund continued work on the Aegis Ashore Missile Defense System to be based in Poland, and to provide multi-year procurement funding for Aegis Weapon System MK 7 equipment sets. This contract will run through September 2021.
And finally, Lockheed won an $84.3 million sole-source, cost-plus-incentive-fee contract funding work on the C-5 Core Mission Computer/Color Weather Radar Engineering, Manufacturing and Development Program for the U.S. Air Force. This contract runs through March 31, 2017.
Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.