The Department of Defense handed out 20 new defense contracts on Monday, awarding $717.7 million in total. Surprisingly, one single firm captured 20% of the contracts on offer: Lockheed Martin (NYSE:LMT).
In a series of four wins, Lockheed secured contracts worth:
- $111.5 million: for the firm's Mission Systems and Training (MST) division, in the form of a cost-plus-incentive-fee, cost-only, firm-fixed-price contract for the development, integration and production of AN/SQQ-89A(V)15 Surface Ship Undersea Warfare Systems. This system enables a surface warship to search, detect, classify, localize and track undersea contacts, and to engage and evade submarines, mine-like small objects and torpedo threats. Lockheed will perform the work under a foreign military sales contract benefiting the Japan Self-Defense Force with a May 2014 completion date.
- $29.7 million: also for MST, in the form of a sole-source, cost-plus-incentive-fee/cost-plus-award-fee contract modification for post-certification support of the Aegis Ballistic Missile Defense baselines 4.0.X, 5.0 and 5.0 capability upgrade -- a project to turn Aegis into a ballistic missile defense system. This contract extension runs through Dec. 2014.
- $8.2 million: for the firm's Missile and Fire Control division, in the form of a cost-plus-fixed-fee contract to supply Affordable Phased Array Sensor Systems to the U.S. Army. These sensors are specially designed to detect incoming missiles, helicopters, and unmanned aerial vehicles.
- $48.2 million: in a contract award shared among Lockheed Martin Services, ABM's (NYSE:ABM) Government Services unit, LB&B Associates, J&J Maintenance, and EMCOR (NASDAQ:EMKR) Government Services. This contract to provide engineering services to the U.S. Army Corps of Engineers is actually a modification of a previously awarded firm-fixed-price, multiple-award, task-order contract, and raises the ceiling value of the initial contract.