The Department of Defense awarded nine separate defense contracts Tuesday, worth $1.04 billion in total. The big winner of the day was Lockheed Martin (NYSE:LMT), which took home 33% of the contract wins -- and 84% of the funds on offer.
Lockheed's headline win of the day was a massive $698 million fixed-price-incentive, firm target, advanced acquisition contract to begin procuring long-lead parts, materials, and components needed to build 57 Low-Rate Initial Production, or LRIP, Lot IX F-35 Lightning II Joint Strike Fighters. These will include:
- 26 F-35A Conventional Takeoff and Landing aircraft, or CTOLs, for the U.S. Air Force.
- Six F-35B Short Takeoff Vertical Landing aircraft, or STOVLs, for the U.S. Marine Corps.
- Two F-35C Carrier Variant aircraft for the U.S. Navy.
- Seven F-35A CTOL aircraft for Israel.
- Six F-35A CTOL aircraft for Norway.
- Six F-35B STOVL for the United Kingdom.
- Two CTOL aircraft for Japan.
- One F-35A CTOL for Italy.
- One F-35B STOVL aircraft for Italy.
These funds should cover Lockheed's work on LRIP Lot IX through May 2015.
Lockheed also won a $93 million option exercise to fund continued work on the Aegis Ashore Missile Defense System to be based in Poland, and to provide multi-year procurement funding for Aegis Weapon System MK 7 equipment sets. This contract will run through September 2021.
And finally, Lockheed won an $84.3 million sole-source, cost-plus-incentive-fee contract funding work on the C-5 Core Mission Computer/Color Weather Radar Engineering, Manufacturing and Development Program for the U.S. Air Force. This contract runs through March 31, 2017.