Lockheed Receives Their JAGM Contract

by: Matthew Potter
August 27, 2012

Category: Boeing, Business Line, Companies, Congress, Contract Awards, Department of Defense, development program, Events, Lockheed Martin, Military Aviation, Raytheon, Services, U.S. Army | RSS 2.0

The new Joint Air-to-Ground Missile (JAGM) is the second effort conducted by the Army to build a replacement for the Hellfire and Maverick air launched missiles. The earlier Joint Common Missile (JCM) program was cancelled. The Army has used 100’s of Hellfires in the fighting in Iraq and Afghanistan and what was originally an anti-tank missile has been modified for other roles. The Maverick is an earlier designed system that too was primarily for anti-tank but did have other warheads. The missiles were launched from a variety of platforms including the AH-1, AH-64, OH-58D, A-10, F-16 and F/A-18 helicopters and aircraft.

Due to budget constraints there have been some recommendations to cancel the new program and continue with the Hellfire. The total cost of development and production for the JAGM could be around 10-12 billion. The Army had been proceeding with a contest between Lockheed Martin (LMT) and a team of Raytheon (RTN) and Boeing (BA) to decide on one source when the decision was made to slow the program down.

The Army decided to use available funds to award the two contenders technology development contracts to keep work going until a final decision was made. At the very least potentially new technology would be developed that might be inserted into older missile systems. If funds were found the JAGM development and production could continue.

Now Lockheed has received their latest contract. It has a value of up to $64 million and is part of the “Extended Technology Development Phase”. Normally a program enters Engineering, Manufacturing and Development (EMD) phase at this time and the Army planned to choose one bidder for that.

Discussions between the Army and Raytheon on their contract continue but it should be awarded soon.

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