The smaller of the two contracts, classified as a foreign military sale for $6.5 million, calls on Lockheed to acquire an air defense system capability for the Royal Jordanian Air Force and purchase and install 22 "guided advanced technical rocket radios." Its completion date is July 2016.
The second contract is a bit larger -- and potentially much larger. Awarded through the Naval Sea Systems Command, this is a $6.6 million firm-fixed-price contract for machinery control systems (MCS) and engineering services for the DDG 51 Fleet Modernization Program. Lockheed will be asked to perform mechanical and electrical upgrades on guided missile destroyers of the DDG 51 class, automating many manual functions to reduce the size of crew needed to fight the ship.
Work on the contract is expected to be complete by June 2014, but the contract provides for the possibility that "options" will be exercised to perform additional work. If all options are exercised, the contract value could climb as high as $134.2 million.
Fool contributor 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.