Lockheed Martin and BAE Systems Win 2 Defense Contracts Each

Lockheed to continue work on AEHF military communications satellite. BAE will continue working on a new amphibious vehicle for the Marine Corps.

Jul 1, 2014 at 11:17AM

The Department of Defense announced 38 separate defense contracts Monday evening with a total value of $7.14 billion. Several publicly traded companies won contracts, including America's Lockheed Martin (NYSE:LMT) and Britain's BAE Systems (NASDAQOTH:BAESY) (LSE:BA), which won two contracts apiece.

Aehf
Lockheed Martin's answer to the old Milstar satellite system -- AEHF. Illustration: Lockheed Martin.

Lockheed Martin's contracts included:

  • A $38.4 million contract modification for work on the U.S. Air Force's Advanced Extremely High Frequency, or AEHF, System Interim Contractor Sustainment Re-Vector, under which Lockheed will conduct critical software development for Mission Planning Development, targeting initial operational capability by 2015. This modification, which itself has a June 30, 2015 completion date, raises the total value of the underlying contract past $8.75 billion. Lockheed describes AEHF as a system that provides "vastly improved global, survivable, highly secure, protected communications capabilities for strategic command and tactical warfighters operating on ground, sea and air platforms," with one single AEHF satellite offering greater communications capacity than the entire legacy five-satellite Milstar constellation of satellites.
  • An $18.4 million contract modification to acquire electronic components needed to support F-35 production, sustainment, and operations, and maintenance requirements for Lockheed's U.S. Navy, Air Force, and international customers. This contract will run through March 2016.

BAE's contracts included:

  • A $20.8 million contract modification to provide the U.S. Army with technical support and maintenance work on the Bradley family of armored vehicles and multiple launch rocket system carriers through Dec. 17, 2015.
  • A $7.9 million contract modification to evaluate risks and assist the U.S. government in determining the best approach for developing a High Waterspeed Amphibious Combat Vehicle for the U.S. Marine Corps. Initially targeting an October completion date, this contract modification includes options that, if exercised, would raise its value to $17.2 million and extend its duration through April 2015. Rival defense contractor General Dynamics, which is also working on a proposal to build the High Waterspeed Amphibious Combat Vehicle, won a similar contract Monday.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks 1 stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics and 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich" rated The Motley Fool as the #1 place online to get smarter about investing.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. It's also featured on several dozen radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers