The contract, for long-lead procurement of parts needed to built the fifth and sixth Geosynchronous Earth Orbit (GEO) satellites for the Space Based Infrared System (SBIRS) missile warning constellation, is worth $284.4 million to Lockheed. This contract is in addition to an earlier contract to perform engineering activities preparatory to building the satellites, and to purchase other long-lead parts, awarded in January. That one was worth $58.4 million.
In Tuesday's announcement, Lockheed clarified that it now has all funds necessary to build the satellites. The next SBIRS contract in line will be the actual production contract to build the satellites, and Lockheed says this one will be awarded "under fixed-price terms" -- although no exact amount was named.
To date, Lockheed has won production contracts for four "highly elliptical earth orbit" (HEO) SBIRS satellites, and four GEOs. Once it wins the next contract, the GEO tally will go up to six. Of these several satellites, so far, two HEOs and one GEO are actually in orbit. The GEO-2 satellite is due to launch later this month.
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.
More from The Motley Fool
Boeing Unveils Its MQ-25 Stingray Prototype
Nearly $27 billion in defense contracts could hinge on the award of this single drone contract.
Trump to Launch "Buy American" Campaign in Support of U.S. Defense Contractors
The Administration reportedly wants to put U.S. military attaches and diplomats to work as a sales force for defense contractors.
Is Russia Losing the Space Race?
A high-risk gamble on a new spaceport in Siberia is marred by high-profile failures.