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.

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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.

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