Lockheed Wins $1.86 Billion SBIRS Satellite Contract

And three smaller contracts as well.

Jun 25, 2014 at 1:18PM

The Department of Defense awarded Lockheed Martin (NYSE:LMT) a total of four separate defense contracts Tuesday. Out of 16 total contracts handed out for the day, Lockheed thus captured 25% -- and an even more impressive 80% of the total dollar value of all contracts awarded.

SBIRS artwork courtesy of Lockheed Martin.

Easily the most important of these awards was Lockheed's winning of a $1.86 billion "modification" of its contract to supply the U.S. Air Force with the fifth and sixth Geosynchronous Earth Orbit, or GEO, satellites for the Space Based Infrared System, or SBIRS, missile warning constellation. Including performance incentives and options for acoustic testing and launch operations, this contract will wrap up awards relating to the SBIRS GEO 5/6 satellites and also cover the cost of associated ground operations and processing updates. SBIRS GEO 5/6 satellites work will continue through Sept. 30, 2022.

In related news, Lockheed Martin also won awards for:

  • $76 million as a contract modification to supply the U.S. Navy, U.S. Air Force, and the governments of Japan and Israel with 252 helmet mounted display systems for use in F-35 Lightning II fighter jets. Deliveries are due for completion by July 2017.
  • Up to $10.6 million to pay for repairs to U.S. Navy AN/UYQ-70 advanced display systems used for tactical and command, control, communication, and computer intelligence applications for target acquisition and tracking, weapons control, theater air defense, anti-submarine warfare, battle group communication, and airborne surveillance and control. Repairs should be completed by April 2015.
  • $8.9 million as a contract modification funding the procurement of 14 "repeatable release holdback bars and common sustainment support" needed to produce Low-Rate Initial Production 6 F-35 Lightning II Joint Strike Fighters. This contract runs through March 2017.

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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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