Please ensure Javascript is enabled for purposes of website accessibility

Lockheed Martin Wins $574.5 Million Aegis Weapons System Contract

By Rich Smith – Dec 27, 2013 at 7:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

BAE Systems, Raytheon are two other winners of contracts Friday.

The Department of Defense announced 12 new defense contracts Friday, worth $1.07 billion combined. Lockheed Martin (LMT 0.41%), the nation's largest pure-play defense contractor, was also the biggest winner of the day -- by far. The $822.5 million in contracts it pulled in accounted for 77% of the funds on offer, and included one single contract that accounted for more than half.

This contract, worth $574.5 million to Lockheed Martin, hires the firm on a firm-fixed-price basis for multi-year procurement of Aegis Weapon System MK 7 equipment sets for installation aboard U.S. Navy Arleigh Burke-class (DDG 51) guided missile destroyers currently under construction, and contains an option to have Lockheed Martin produce weapons for the Aegis Ashore Missile Defense System to be installed in Poland. The contract will run through September 2021.

Other winners of smaller awards Friday included:

  • British defense contactor BAE Systems (BAES.Y -0.17%) (LSE: BA), which won a $16.5 million firm-fixed-price, partial-foreign military sales contract to supply Common Identification Friend or Foe hardware for the U.S. Army, U.S. Navy, and the governments of Korea, Taiwan, and the United Arab Emirates. Delivery is due January 2016.
  • Raytheon (RTN), recipient of a $40.9 million ceiling-priced delivery order to repair 40 Weapon Replaceable Assemblies of the APG 65/73 Radar System used on U.S. Navy F/A-18 fighter jets. Raytheon is to complete its work by December 2015.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin and Raytheon Company. We Fools may not 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.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.