Lockheed Martin and BAE Systems Win 2 Defense Contracts Each

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.


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.


Read/Post Comments (0) | Recommend This Article (1)

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: 3014508, ~/Articles/ArticleHandler.aspx, 9/19/2014 1:54:11 AM

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