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LOCKHEED MARTIN POWERS ON SECOND GPS III SATELLITE IN PRODUCTION — Press Release

DENVER, Jan. 29, 2014 – The Lockheed Martin [NYSE: LMT] team developing the U.S. Air Force’s next generation Global Positioning System (GPS) recently turned on power to the bus and network communications equipment payload of the program’s second satellite designated GPS III Space Vehicle 2 (SV-02).

The successful powering on of GPS III SV-02, on Dec. 19, 2013, at Lockheed Martin’s Denver-area GPS III Processing Facility (GPF), is a major production milestone which demonstrates the satellite’s mechanical integration, validates its interfaces, and leads the way for electrical and integrated hardware-software testing.

“The GPS III SV-02 bus power on is a significant milestone, positioning SV-02 in line with the Air Force’s first GPS III space vehicle, SV-01, in our GPF, where both satellites are progressing through sequential integration and test work stations specifically designed for efficient and affordable satellite production,” explained Mark Stewart, vice president for Lockheed Martin’s Navigation Systems mission area.

On Nov. 11, 2013, the propulsion core module for SV-02 was delivered to the GPF from Lockheed Martin’s Space & Technology Center, in Stennis, Miss., where the core was manufactured. The structural backbone of the satellite, the core contains the integrated propulsion subsystem that allows the GPS III to maneuver on orbit immediately after launch, as well as to conduct repositioning maneuvers throughout its mission life.

The GPS III program will affordably replace aging GPS satellites, while improving capability to meet the evolving demands of military, commercial and civilian users. GPS III satellites will deliver three times better accuracy; provide up to eight times improved anti-jamming capabilities; and include enhancements which extend spacecraft life 25 percent further than the prior GPS block. The GPS III also will carry a new civil signal designed to be interoperable with other international global navigation satellite systems, enhancing civilian user connectivity.

Lockheed Martin is currently under contract for production of the first six GPS III satellites (SV 01-06), the first four funded under the original contract and the fifth and sixth recent fully funded by an exercised Air Force option on Dec. 13, 2013. Lockheed Martin had previously received advanced procurement funding for long-lead components for the fifth, sixth, seventh and eighth satellites (SV 05-08).

The first GPS III satellite (SV-01) was powered on in Feb. 28, 2013. GPS III SV-01’s spacecraft bus and antenna assemblies were delivered to Lockheed Martin’s GPF this summer. SV-01 is now in the integration and test flow leading to delivery “flight-ready” to the Air Force.

The GPS III team is led by the Global Positioning Systems Directorate at the U.S. Air Force Space and Missile Systems Center. Lockheed Martin is the GPS III prime contractor with teammates Exelis, General Dynamics, Infinity Systems Engineering, Honeywell, ATK and other subcontractors. Air Force Space Command’s 2nd Space Operations Squadron (2SOPS), based at Schriever Air Force Base, Colo., manages and operates the GPS constellation for both civil and military users.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs approximately 115,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s net sales for 2013 were $45.4 billion.

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Lockheed Martin Delivers 22 JLTV Development Vehicles To U.S. Army and Marines — Press Release

DALLAS, Aug. 14, 2013 /PRNewswire/ — Lockheed Martin (NYSE: LMT) celebrated the delivery of 22 Joint Light Tactical Vehicles to the U.S. Army and Marine Corps today under the JLTV program’s Engineering and Manufacturing Development (EMD) contract.

JLTV team members marked the milestone during a ceremony at the Lockheed Martin Missiles and Fire Control facility in Dallas. The vehicles will be transferred to the Army’s Yuma Test Center in Arizona and to Aberdeen Test Center in Maryland, where Lockheed Martin will support a 14-month period of government evaluation and testing.

“Our team has produced a highly capable, reliable and affordable JLTV for our customers,” said Scott Greene, vice president of ground vehicles for Lockheed Martin Missiles and Fire Control. “These vehicles will meet the toughest demands of our Soldiers and Marines. They deserve our best, and that’s precisely what we delivered.”

After rolling up more than 160,000 combined test miles in the program’s Technology Development phase, the Lockheed Martin JLTV was selected for continued development through a $65 million EMD contract from the Army and Marine Corps in August 2012. Lockheed Martin designed its JLTV specifically to meet stated customer requirements for the program, rather than trying to adapt an existing vehicle. The result is a lighter, more blast-resistant and more agile vehicle.

The Lockheed Martin JLTV is designed to be a total solution – engineered from the ground up to balance the “iron triangle” of protection, performance and payload while maintaining affordability. The vehicle provides greatly improved crew protection and mobility, lower logistical support costs, superior fuel efficiency, exportable power-generation with substantial margin for future growth, and state-of-the-art connectivity with other platforms and systems. A Meritor Pro-TecTM air suspension system contributes to outstanding off-road performance while minimizing crew fatigue.

BAE Systems is responsible for the JLTV’s geometrically enhanced protection system, a design that enables levels of blast protection never before achieved in this vehicle class, and for vehicle final assembly.

For more than three decades, Lockheed Martin has applied its systems-integration expertise to a wide range of successful ground vehicles for U.S. and allied forces worldwide. The company’s products include the combat-proven Multiple Launch Rocket System (MLRS) M270-series and High Mobility Artillery Rocket System (HIMARS) mobile launchers, Havoc 8×8, Common Vehicle, Light Armored Vehicle-Command and Control, Warrior Capability Sustainment Programme, Joint Light Tactical Vehicle and pioneering unmanned platforms such as the Squad Mission Support System (SMSS).

Lockheed Martin Missiles and Fire Control is a 2012 recipient of the U.S. Department of Commerce’s Malcolm Baldrige National Quality Award for performance excellence. The Malcolm Baldrige Award represents the highest honor that can be awarded to American companies for their achievements in leadership, strategic planning, customer relations, measurement, analysis, workforce excellence, operations and results.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 116,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration, and sustainment of advanced technology systems, products, and services. The Corporation’s net sales for 2012 were $47.2 billion.

For additional information, visit our website: http://www.lockheedmartin.com/jltv

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U.S. Navy Sea Based Missile Defense Advances to Shore

In the early 1990’s in a response to Iraq’s use of Scud missiles during Desert Storm the U.S. military, led by the then Ballistic Missile Defense Organization (BMDO), now the Missile Defense Agency (MDA), began investing in defenses against shorter range threats. Previous efforts had been oriented to defending the United States from the large the Intercontinental Ballistic Missile (IBCM) based in the Soviet Union. All three of the major services had programs but the focus was on U.S. Army and Navy missile systems.

The Navy began developing 2 different systems that mirrored the Army’s path. Both involved modifying their current primary long range air defense system, AEGIS. This utilized large phase arrayed radars and the STANDARD Missile-2 (SM-2) interceptor. The AEGIS radars and other systems had originally been developed by General Electric (GE) but by the mid-1990’s had transitioned through Martin Marietta to Lockheed Martin (LMT). The SM-2 was produced by Hughes Missile Systems and Raytheon (RTN) but ultimately Raytheon acquired the whole business.

First, the missile, radars and command and control systems would have capability added to defense against shorter range missiles but still maintain their air defense mission. The Army was doing the same thing with their Patriot surface-to-air missile system. Secondly, a dedicated missile utilizing an exo-atmospheric kill vehicle would be developed. That meant the missile would not be able to engage air breathing targets but much longer ranged missiles.

By the early part of this century the air defense capable version, SM-2 Block IVA, had been cancelled due to budget and schedule issues. The long range SM-3, though, continued development and testing. It has proved successful including being able to intercept and destroy a failing satellite in 2008. The system has entered production and several cruisers and destroyers have been modified to utilize it. The Navy has continued development and the new SM-6 missile has just entered production at a new factory in Huntsville, AL.

The MDA has also decided as a way to supplement the current Ground Based Mid-Course System based in Alaska to develop “AEGIS Ashore”. This places the radars, other systems and missiles in trailers and containers that can be set up in different places and even moved around as necessary.

This program made a major step forward recently with the build up of the first test set that will be installed ultimately at the Pacific Missile Range Facility (PMRF) in Kauai, Hawaii for testing. Once that system is moved a second one will be installed at the main AEGIS production and development center in New Jersey. Ultimately the first set will be set up in Eastern Europe.

Originally the Bush Administration had planned on an expansion of the Alaskan ground based system into Poland and other parts of Eastern Europe. This was cancelled by the Obama Administration and AEGIS Ashore substituted. There is also plans to utilize AEGIS ships to provide missile defense converge of parts of NATO in Europe.

AEIGS Ashore is just one part of the continued Navy and U.S. investment in missile defense as it includes upgrades to the AEGIS radars, C2 systems and steady development of the STANDARD Missile. All of this will be to the advantage of key contractors like Lockheed and Raytheon. Further developments of a new radar, the Air and Missile Defense Radar (AMDR) also include bidders like Northrop Grumman (NOC) so as the program develops there will be chances of contract wins and work for other contractors. These efforts could also flow into the AEGIS Ashore or its replacement system in the future.

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Navy Awards Contracts for New Ship Components

The building of a modern warship requires not only the initial large contract with the builder but numerous other ones to buy components and support for the actual ships. Other systems are purchased with separate contracts and then items are provided to the builder for installation on the ships as they are assembled. The U.S. Navy is currently building new aircraft carriers, missile destroyers, Littoral Combats Ships (LCS), amphibious warfare ships as well as support vessels.

The LCS is being built by 2 different yards under 2 separate contracts. The LCS-1 design are made in Wisconsin by Marinette Marine and Lockheed Martin (LMT). The LCS-2 in Mobile, AL by Austal America and General Dynamics (GD). While they have dissimilar hull designs the basic weapon fit remains the same and both will carry mission modules. Up to 20 LCS are on contract to be built with the Navy periodically issuing contracts for 2 from each builder.

2 related contracts were recently awarded to support U.S. Navy ship construction. First General Dynamics (GD) received one for 8 MK 46 Naval Weapon Systems. The MK 46 is a 30mm cannon mounted in a stabilized turret. These will be installed on LPD-12 amphibious assault ships and the LCS. The contract is worth $26 million and is a follow on to previous contracts under which 30 systems have been delivered.

Then ATK (ATK), the ammunition and explosive manufacturer, received a contract for 30mm ammo. This $12 million contract is for incendiary rounds for the MK 46. It is a 5 year Indefinite Delivery / Indefinite Quantity (ID/IQ) contract with 1 base and 4 option years. As an ID/IQ the Navy will order off of the contract what is required to outfit ships with the Mk 46 weapon.

With Sequestration and the budget reductions recently passed by Congress and agreed to by the Obama Administration FY13 will probably not see many more major contracts awarded. There may be many though like these to support bigger programs already underway.

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Air Force Awards GPS Contracts

Even as the nation heads towards sequestration and its dramatic effects on defense spending the Pentagon continues to execute programs and award necessary contracts. Recently the Air Force awarded 2 separate Global Positioning Satellite (GPS) contracts. GPS satellites provide signals that allow receivers to locate themselves. It is used heavily by both the military and in many civil applications.

The Air Force is in the process of upgrading the existing satellite systems to the new Block III status. Lockheed Martin (LMT) received a $62 million contact to buy long lead materials for GPS Block III satellites #5 & 6. These are the last two systems on a contract to procure the Block III satellites. Ultimately up to 32 will be built and placed into orbit. The first one is planned for launch next year.

At the same time Boeing (BA) received a contract that was worth $51 million to support launch of the Block IIF satellite. This has one base year and up to 4 option years. Up to 12 Block IIF satellites will be launched with 3 currently in orbit. This contract will prepare the systems for launch and support them once in orbit.

Maintaining a viable GPS constellation has become critical to the U.S. military as it allows precision guidance of everything from a patrol of Soldiers or Marines to ships and bombs and missiles. The military has worked hard to execute available options on contracts prior to the sequestration but have been hampered by the Continuing Resolution Authority (CRA) that still exists.

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Raytheon Bids for New Air Force Communications Terminal

The Global Aircrew Strategic Network Terminal (Global ASNT) is a U.S. Air Force project that is part of the Minimum Essential Emergency Communications Network (MEECN)system. It’s role is to provide messaging and aircrew alert functions. It will be part of the Advanced Extremely High Frequency / Extremely High Frequency (AEHF/EHF) system utilizing new AEHF communication satellites now being built by Lockheed Martin (LMT) to improve U.S. communication capabilities.

The requirement has existed for several years but earlier this month the U.S. Air Force asked for final proposals by 18 January. The solicitation information may be found on FedBizOpps.Gov here.

It has been reported that Raytheon (RTN) did submit a proposal for this requirement. It believes that the contract will be awarded this summer. The company is already building AEHF ground terminals for use by the military.

The program is still R&D and this contract would develop the terminal. It would then move into production later. If any other company bid on the contract it has not been publicized.

Due to the budget uncertainty of the sequestration and continuing resolution it may be hard in FY13 to begin new programs like this. They might, as the Army has already announced with the Ground Combat Vehicle, delay them a few months to get to FY14 and a more stable fiscal environment.

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Canada to Look at Other Aircraft for F-35 Mission

After considering the independent auditor’s report submitted to the Ministry of Public Works earlier this year the Conservative government of Canada announced yesterday that they would now look at other aircraft rather then the F-35 to meet the CF-18 replacement requirement. The major reason cited was the much higher estimate of the lifetime cost to procure and operate the advanced aircraft.

The new estimate is almost $46 billion over a projected 42 years. The estimate used to justify the sole source contract for the F-35 was $25 billion for 20 years of operations. The auditor also estimated that due to the cost increases in the F-35 that with the current available funding only 55 aircraft could be bought and not 65.

Canada will now establish a new group to look at aircraft. These could include Boeing (BA) F/A-18 fighters, Eurofighter Typhoons and Dassault Rafale aircraft. The loss of the Canadian buy while a small part of the total planned quantity of over 2,000 F-35 would be a blow to the program and Lockheed Martin (LMT).

The increases in unit cost of the aircraft along with the delays in schedule have caused other partners to reconsider. The Netherlands has also looked at the program’s cost growth over the years as a reason to reconsider. It would allow less aircraft to be purchased to replace their aging F-16 fighters. There is also a requirement to continue using the older aircraft longer then originally planned with associated costs.

Canada could in the end still choose the F-35 but the fact that they are conducting the review is a negative for the overall program.

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5th LRIP Batch of F-35 JSF to be Awarded

Lockheed Martin (LMT), the prime contractor on the Joint Strike Fighter (JSF), and the U.S. Department of Defense have pretty much wrapped up negotiations for the latest batch of F-35 Joint Strike Fighter (JSF) production. This goal was to complete and award this by the end of 2012 and it looks like that will be met.

The FY13 order will be for 32 more of the advanced aircraft split between the 3 variants. The bulk, 22, are the Air Force’s Conventional / Take Off and Landing (CTOL) version. These are intended to replace the F-16 and A-10 platforms currently in use. Then there are 3 F-35B Short/Vertical (S/VTOL) for Marine Corps to meet the AV-8A mission and finally 7 F-35C carrier based aircraft for the Navy. Estimates for the cost of the aircraft along with engineering services and other money is in the $3.8 – 4 billion range.

The F-35 program remains several years behind original schedules and cost have increased greatly but much progress has been recently made. There are now over 150 aircraft delivered or in production with this order. They are supporting test and development along with training for pilots and ground crew.

Due to the high concurrency remaining with the program Lockheed will have to go back and modify many of the current production aircraft to the final standard after they are delivered. This is due to the much more T&E remaining for things like the advanced helmet, software and other parts of the aircraft. The F-35 continues to remain on track to be the most expensive defense acquisition program in history.

Photo from U.S. Navy Imagery’s flickr photostream.

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Saudi Arabia to Upgrade C-130 Fleet

The U.S. Defense Department informed Congress this week that they intend to sell to Saudi Arabia 25 C-130J and KC-130 aircraft. The aircraft are made by Lockheed Martin (LMT) outside Atlanta. If Congress does not object in 30 days, which they most likely will not, then the contract will begin. Estimate of the value including spares, support and other services is almost $7 billion.

It represents the largest C-130 Foreign Military Sale (FMS) contract in value.

The C-130J is the latest version of the venerable propeller driven transport which has been in use since the Fifties. Several hundred of the model are now in service with the U.S. Air Force, Marine Corps and many different nations around the world. The fighting in Iraq and Afghanistan which due to the vehicle threat emphasized tactical transport with aircraft like the C-130 and rotary wing assets drove some of the sales in the last 10 years.

Saudi Arabia already operates 50 older versions of the aircraft so this contract represents a significant upgrade to that capability.

With the potential for less domestic contracts U.S. contractors will be looking overseas for more sales.

Photo from kingair42′s flickr photostream.

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Lockheed Martin submits Space fence radar proposal to U.S. Air Force to detect and TRACK ORBITal objects — Press Release

MOORESTOWN, N.J., Nov. 13, 2012 – Lockheed Martin [NYSE: LMT] has submitted its final contract proposal to build Space Fence, an advanced ground-based radar system that will improve the way the U.S. Air Force identifies and tracks orbital objects.

Space Fence will provide much-needed enhanced space situational awareness capabilities for the Air Force and allow the service to decommission the aging U.S.-based Air Force Space Surveillance System, originally installed in 1961.

“The original surveillance system wasn’t designed to detect and track the hundreds of thousands of smaller, orbiting objects that are in space today, potentially threatening the International Space Station, future manned space flight missions and our nation’s critical satellite assets,” said Steve Bruce, vice president for space surveillance systems at Lockheed Martin’s Mission Systems & Sensors business. “With decades of experience developing powerful S-band radar systems, Lockheed Martin has proposed a scalable and affordable Space Fence solution for the Air Force that will transform space situational awareness.”

The Air Force plans to begin construction at its first Space Fence site on Kwajalein Atoll in the Marshall Islands in the fall of 2013 to meet the program’s 2017 initial operational capability goal. The contract value is estimated at $1.9 billion over a seven-year period of performance.

Using powerful, new ground-based S-band radar technology, Space Fence will enhance the way the U.S. detects, tracks, measures and catalogs orbiting objects and space debris with improved accuracy, better timeliness and increased surveillance coverage. Earlier this year, Lockheed Martin demonstrated its prototype Space Fence radar proving it could already detect resident space objects.

With more than 400 operational S-band arrays deployed worldwide, Lockheed Martin is a leader in S-band radar development, production, operation and sustainment. The Lockheed Martin-led team – which includes General Dynamics, AMEC and AT&T – has decades of collective experience in space-related programs, including sensors, mission processing, cataloging, orbital mechanics, net-centric communications and facilities.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 120,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s net sales for 2011 were $46.5 billion.

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Photo courtesy of Lockheed Martin

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Lockheed Martin (LMT) Press Relases on the Change of COO

If you hadn’t heard the President and COO of Lockheed resigned Friday for personal reasons. Here is the press release announcing that and then the one appointing Marillyn A. Hewson to replace Chris Kubasik.

Chris Kubasik Resigns as COO of Lockheed Martin

WASHINGTON, Nov. 9, 2012 /PRNewswire/ — Today, Chris Kubasik, Vice Chairman, President and Chief Operating Officer of Lockheed Martin Corporation, released the following statement:

“Today, I have submitted my resignation from the board of directors of Lockheed and signed an agreement of separation ending my tenure as an officer of the company. My departure in no way reflects on the strength of Lockheed Martin. I remain confident in the future of the company. I regret that my conduct in this matter did not meet the standards to which I have always held myself. I am grateful to have worked with such an outstanding team of colleagues and friends and continue to be proud of our work together over the past 13 years.”

Lockheed Martin Board Elects Marillyn Hewson CEO & President and Member of the Board
Christopher Kubasik Resigns

BETHESDA, Md., Nov. 9, 2012 /PRNewswire-FirstCall/ — Lockheed Martin [NYSE:LMT] announced today that its board of directors asked for and received the resignation of Christopher E. Kubasik, 51, from his role as vice chairman, president and chief operating officer (COO), effective immediately. The board also elected Marillyn A. Hewson, 58, president and COO, and a director effective immediately, and chief executive officer (CEO) and president effective January 1, 2013. Hewson will also retain her role as executive vice president of Electronic Systems business area until the end of this year.

Kubasik, previously slated to become CEO in January, resigned after an ethics investigation confirmed that he had a close personal relationship with a subordinate employee. His actions violated the company’s Code of Ethics and Business Conduct, but did not affect the company’s operational or financial performance.

“While I am deeply disappointed and saddened by Chris’ actions, which have been inconsistent with our values and standards, our swift response to his improper conduct demonstrates our unyielding commitment to holding every employee accountable for their actions,” said Robert J. Stevens, chairman and CEO. “Fortunately, we have a strong leadership team and a robust succession plan that allowed the board and me to react quickly and appropriately to this situation. Marillyn is an exceptional leader with impeccable credentials and deep knowledge of our business, customers, shareholders and employees.”

The board also elected Stevens Executive Chairman effective January 1. In that role he will work with Marillyn to facilitate a smooth CEO transition.

“As Board Executive Chairman,” Stevens continued, “I will remain very active and involved in our company’s work, playing any role that would be of value, and I will do this throughout 2013.”

Douglas H. McCorkindale, Lockheed Martin’s independent lead director said, “Upholding the highest ethical standards is embedded in the fabric of the Lockheed Martin character and is the foundation of the decisive action we took in the face of a very challenging situation. Marillyn is a strong leader with a record of delivering impressive results. She has the full support of the board as she assumes her responsibilities as our next CEO.”

Hewson joined Lockheed Martin in 1983, has served as executive vice president of the Electronic Systems business area since January 2010, and was named President and COO-elect by the board in April 2012. She earned her bachelor’s degree in business administration and a master’s degree in economics from The University of Alabama. She also attended the Columbia Business School and Harvard Business School executive development programs. She chairs the Sandia Corporation board of directors and she serves on the board of DuPont. Hewson is a member of the Association of the United States Army Council of Trustees and the University of Alabama’s Culverhouse College of Commerce and Business Administration Board of Visitors.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 120,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation’s net sales for 2011 were $46.5 billion.

The stock market seemed to take it in stride Friday and overall LMT stock and earnings have done reasonably well this year. More can be read about their most recent quarter here.

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Option Executed for More C-130 Aircraft

October 24, 2012 by · Comment
Filed under: Editorial 

The U.S. Department of Defense executed a contract option with Lockheed Martin (LMT) for another batch of C-130J aircraft. The C-130J is the latest version of the venerable Hercules in use for fifty years with the U.S. military and many allied nations. The latest option is for the FY13 budget year.

The nearly $900 million contract will buy 13 new C-130 aircraft. This includes most versions of the transport including MC-130, HC-130, KC-130 and the normal C-130 transport version.

The U.S. air transport fleet has flown millions of hours and carried thousands of tons and passengers in support of the fighting in Iraq and Afghanistan. The C-130 are normally used for shorter missions often in theater to move cargo and people around.

The largest U.S. defense contractor also recently signed a deal with Iraq for 18 more F-16 fighters worth close to $3 billion. This is part of a deal to provide 36 of the light aircraft to modernize the new Iraq air force.

Photo from ngotoh’s Flickr photostream.

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Thailand becomes the 34th Asia Pacific region country to deploy Lockheed Martin’s long range radar — Press Release

When the Royal Thai Air Force (RTAF) activated its new TPS-77 radar recently, it greatly expanded the Thailand’s long-range air surveillance network capability. In particular, the radar helps provide greater air sovereignty, security and safety over much of the Gulf of Thailand.

With this direct commercial sale and installation now successfully completed, Thailand became the owner of the 34th Lockheed Martin long-range radar operational in the Asia Pacific region. Thailand joins countries such as Korea, Taiwan and Australia, who have relied on Lockheed Martin’s family of 3-D, solid-state, L-band surveillance radars for decades.

More countries are recognizing the need to enhance their air surveillance with modern, cost-effective radar systems. In February, Lockheed Martin and Indonesian technology firm PT CMI Teknologi signed a teaming agreement to pursue the National Airspace Surveillance – Republic of Indonesia (NASRI) program, a new network of radar systems that will improve airspace surveillance, safety and management over the Indonesian Archipelago.

Lockheed Martin ground-based air surveillance radars are the choice of more than 30 nations on six continents. Today, 178 Lockheed Martin long-range systems operate around the world—more than all other competitive radars combined.

Lockheed Martin’s TPS-59, TPS-77 and FPS-117 family of radars are high-performing, reliable, solid state systems specializing in early warning, situational awareness, and ballistic and tactical missile surveillance and defense.

Commonality in supporting and sustaining a fleet of 178 long-range radars operational around the world allows for leveraging signal and data processing upgrades to continually modernize systems and provide significant lifecycle cost savings.

The TPS-77 is the latest configuration of the world’s most successful 3-D solid-state radar design. This transportable radar provides continuous high-quality 3-D surveillance on aircraft targets at ranges out to 250 nautical miles. The TPS-77 shares commonality with Lockheed Martin’s FPS-117 radar with regard to maintenance activity and Line Replaceable Units. Many have performed for years completely unmanned in remote areas, and in a wide range of operational environments.

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Pentagon Plan JSF Upgrade Contract

The U.S. Air Force and Navy Joint Project Office for the Joint Strike Fighter (JSF) announced recently that they plan to tender a contract to upgrade the first 93 F-35 aircraft to be consistent with a later production version. This covers 4 years of Low Rate Initial Production (LRIP) aircraft that are currently being delivered.

No value for the contract was estimated but it should be several hundred million dollars to modify that number of aircraft.

It would be expected that Lockheed Martin (LMT), the prime contractor on the current JSF development and production effort, would be awarded the contract. The announcement though did leave an opening for others to submit proposals to do the work. This would be extremely hard for another contractor to do depending on how much technical data the Government owns and is available. Just estimating the cost of the work without that information would be difficult.

The JPO is expecting this contract to take some time to develop, negotiate and award as the LRIP 5 production contract remains in negotiation with Lockheed and probably won’t be awarded until the end of this year. Those aircraft would be coming off of the production line in several months. This will allow the program to continue production, testing and training while then beginning to retrofit the existing aircraft.

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More TOW Missiles from Raytheon (RTN)

As the new Fiscal Year starts and despite the threat of sequestration and the associated reduction in spending the Pentagon continues to award contracts for equipment and services. One of the most recent is to Raytheon (RTN) for production of TOW anti-tank missiles.

The contract is worth almost $350 million and will provide for 5 years of production and will deliver almost 7,000 of the missiles. These are new versions of the systems which will rely on wireless guidance. In the past the TOW had been controlled through a thin wire connecting the missile to the launcher.

The TOW is fired from helicopters, a variety of vehicles as well as ground mounts and is used by the U.S. Army and Marine Corps. The larger Hellfire made by Lockheed Martin (LMT) is laser guided and is primarily used from helicopters such as the AH-64D Apache.

These types of missile have seen heavy use in Iraq and Afghanistan primarily for destroying point targets such as buildings and unarmored vehicles rather then their original planned use as heavy anti-tank weapons.

Until the final resolution of sequestration or the FY13 budget these types of contracts will continue to be awarded.

Photo from U.S. Army flickr photostream.

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ULA Wins Contract for Further Launch Services

As the fiscal year came to an end this weekend the Pentagon closed it out by awarding several FY12 contacts. One of the biggest was to United Launch Alliance (ULA) for launch services in FY 2013.

ULA is a joint venture between Boeing (BA) and Lockheed Martin (LMT) and builds Atlas and Delta rockets used to launch military payloads. The overall program is the Evolved Expendable Launch Vehicle (EELV). Under the contract ULA provides both the launchers as well as engineering, management and launch activity support.

This part of the contract option for FY13 is worth a little over $1 billion and the number of launches planned for this year was not specified.

The original plan for EELV a decade a go was to support both Boeing and Lockheed as separate launch vehicle providers but eventually the decision was made to establish a joint venture between the two companies as a way to reduce costs.

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Boeing Receives Next Production Order for P-8 Aircraft

Despite the threat of sequestration and its effect on next year’s budget the Pentagon continues to issue orders as FY12 comes to an end. Many existing hardware contracts received their annual buys over the last few months.

Boeing (BA), for example, just received the latest production lot for the new anti-submarine warfare (ASW) and patrol aircraft for the U.S. Navy. The P-8A Posieden is a modified 737 airliner. The contract is for another 11 aircraft and is valued at close to $2 billion.

The P-8A is replacing the P-3C originally manufactured by Lockheed Martin (LMT). The P-8A has been in development since 2004 and the first squadron is expected to stand up next year.

The aircraft has also been purchased by India in one of the largest defense deals a U.S. company has ever had with it.

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Lockheed Martin Awarded $35.98 Million Contract To Solidify Long Range Radar Requirement for 3DELRR Program — Press Release

SYRACUSE, N.Y., Sept. 18, 2012 – The U.S. Air Force awarded Lockheed Martin [NYSE: LMT] a nearly $36 million contract for the next part of its Three Dimensional Expeditionary Long Range Radar (3DELRR) program.

The 3DELRR is intended to serve as the principal long-range, ground-based sensor for detecting, identifying, tracking, and reporting aerial targets for the Air Force. The system, which will replace the AN/TPS-75 air surveillance radar, will be capable of detecting new, emerging air defense threats and managing challenging battlefield air control scenarios out to extended ranges.

Under the Pre-Engineering and Manufacturing Development (Pre-EMD) Period of the Technology Development Phase, the Air Force is expected to review industry trade studies to help set final radar requirements, conduct preliminary design reviews, and demonstrate radar system-level technology maturity.  At the end of this 15-month phase, the Air Force is expected to award an EMD and low-rate production contract.

Lockheed Martin has 178 long-range radars operational around the world and has made significant investments to reduce risk and drive affordability for the 3DELRR program.

“We need to give battlefield commanders the most response time possible to detect and prosecute emerging threats.  Only advanced technology long-range radar like 3DELRR can do that,” said Mark Mekker, director of ground-based surveillance radar for Lockheed Martin’s Mission Systems & Sensors business.  “Our 3DELRR technology is mature, focused on not just performing now, but evolving and extending system life as required. We can offer that radar to the U.S. Air Force today.”

In December 2010, Lockheed Martin unveiled a functioning full-scale system prototype as proof of the radar’s maturity.  At the time, the radar’s design addressed 100 percent of 3DELRR requirements, including critical extended air surveillance reach for early warning from threats, such as aircraft and ballistic missiles. This was the second and final demonstration required under a $25 million, 20-month technology development contract awarded in May 2009.

Work on the 3DELRR program is performed at the company’s Syracuse, N.Y. and Moorestown, N.J. facilities.

Headquartered in Bethesda, Md., Lockheed Martin is a global security and aerospace company that employs about 120,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation’s net sales for 2011 were $46.5 billion.

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Concept illustration courtesy of Lockheed Martin.

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F-35 JSF News Roundup

The F-35 Joint Strike Fighter (JSF) is the largest defense acquisition program ever and it continues despite the budget uncertainty in the United States. If sequestration is implemented the program will most likely see across the board reductions in funding. This could lead to reduced production numbers and delays in the test and development program. The JSF while it is in low rate production is still facing concurrency as it moves toward a final design. The program is led by Lockheed Martin (LMT).

Some recent stories about the program include:

The new test plan for the program was reviewed by DoD leadership and did not win approval. There are major concerns with the pace of development for the new helmet the pilot wears that provides data directly to them rather then relying on their instruments.

Lockheed received a contract from the U.S. Navy worth over $200 million to begin implementing Israeli specific modifications to support that country’s buy of the aircraft.

In another move related to the foreign sales of the program Canada has hired KPMG to analyze the cost basis used by the government to award their contract for 65 F-35 to replace existing CF-18 fighters.

Despite all of this news the program continues with training, testing and development as Lockheed steadily delivers aircraft from the first 4 production batches. They also continue to work with the Government on the next buy.

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AMDR Work Continues, Northrop Announces Testing Success

The U.S. Navy is in the process of developing the successor to the SPY-1 radar and combat system that makes up part of the AEGIS Weapon System mounted on cruisers and destroyers. Originally designed to deal with a large number of aircraft and anti-ship missiles the system has been modified to address the ballistic missile threat to the United States. The new radar program is called the Air and Missile Defense Radar (AMDR) and is currently in development.

In 2010 3 different contracts were awarded to U.S. defense contractors Northrop Grumman (NOC), Raytheon (RTN) and Lockheed Martin (LMT) to develop a version of the radar. The goal is later this year to move forward with another contract to complete development and engineering with a goal of selecting one provider. The new radar will go on ships like the DDG-1000 and new DDG-52 ships as they are built.

All 3 contractors have experience with Navy ship building, radars and missiles. In August Lockheed announced that it had already submitted their proposal for the next step of the program. Now today Northrop is showing its system and its testing. They also turned in a proposal this summer for the next phase.

Their AMDR system has completed some of its initial range testing including Near and Far field in Maryland. The testing has been successful demonstrating the capabilities of their design.

The AMDR program once it completes development and goes into production will replace the SPY-1 in the role of air as well as missile defense. While the Navy program for new ships remains in flux after 2013 due to the potential reductions in the U.S. defense budget it represents a huge program as it will be used for decades requiring further development, support and production.

Lockheed is the current contractor for the SPY-1 through acquiring Martin Marietta who had purchased the original developer and producer, General Electric (GE), defense work in this area.

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Navistar Decides Not To Go Ahead with JLTV Protest

It is now being reported that Navistar (NAV) will not pursue its protest of the JLTV EMD contracts awarded almost two weeks ago. They did this after Labor Day.

The three Engineering, Manufacturing and Development (EMD) contracts were awarded three weeks ago. They were given to AM General, Lockheed Martin (LMT) and Oshkosh. The Navistar and General Dynamics (GD) proposals did not win.

Navistar had protested right at the end of the window to do so and after receiving their debrief from the Army. By doing this it placed the execution of the contracts on hold until the protest was resolved.

It looks like Navistar filed the protest to make sure they hit the window. After reviewing more information they decided to withdraw it. There has still been no indications that GD will go ahead with one.

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Navistar Reportedly Files Protest of JLTV EMD Contract Awards

Two weeks ago the Army awarded 3 contracts for further efforts on the HUMVEE replacement, the Joint Light Tactical Vehicle (JLTV). The proposals from Lockheed Martin (LMT), Oshkosh (OSK) and AM General were selected. The Navistar and General Dynamic (GD) ones were not. The value of these contracts were between $55-65 million and are for the first year of a two to three year process to build and test prototypes. At the end of this one will be chosen to go into production.

The JLTV program has the potential to be quite large as the estimated quantities are in the tens of thousands. The current cost estimate for production is about $13 billion. This does not take into account future support and parts contracts as well as the potential for foreign and direct military sales to U.S. allies.

It has now come out that Navistar filed a protest late Friday near the end of the ten day period. The losers were supposedly briefed on Thursday as to why their proposals were not chosen.

The filing of the protest means the contracts cannot be executed until it is resolved. The General Accountability Office (GAO) has 100 days to do this. The result could be an overturning of the awards and direction to do a new contest or directing the Army to review its selection process. In some cases the GAO has awarded the protester the contract over the winner.

As the defense budget shrinks and contracts become more valuable to the different defense contractors protests should increase. This was the trend in the Nineties when there was the last major contraction in U.S. spending.

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More Counter IED Work for Lockheed

The primary threat to U.S. forces in Iraq and Afghanistan has been the Improvised Explosive Device (IED) and mine. The Pentagon has spent billions on countering these weapons. Primarily through passive defense by acquiring large, Mine Resistant Ambush Protected (MRAP) vehicles and up armoring other systems. They have though worked on active defense such as systems to detect and jam the IED’s.

Recently Lockheed Martin (LMT) was awarded a contract for spare and repair parts for a system they developed called the Vehicle Optics Sensor System. The contract is worth over $300 million and is good for the next two years.

The VOSS adds different cameras and other optical sensors to mine clearing vehicles. This assists the engineers in detecting IED and helping them neutralize them. The U.S. has also invested in radars that are vehicle mounted to scan the road ahead looking for the same kind of threat.

The U.S. will continue to carry out such types of contracts as long as they are engaged in Afghanistan. Once that ends the military will be faced with a large inventory of systems to counter the IED threat that might not be applicable to future conflicts.

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Meritor® Defense Supports Lockheed Martin with ProTec™ Suspension for JLTV Development Contract — Press Release

TROY, Mich., Aug. 27, 2012 /PRNewswire-FirstCall/ — Meritor, Inc. (NYSE: MTOR) announces that its ProTec™ High Mobility Independent Suspension (HMIS) will be integrated into Lockheed Martin’s (NYSE: LMT) military vehicle that recently advanced to the next round of the Army and Marine Corps Joint Light Tactical Vehicle (JLTV) program.

Lockheed Martin is one of three companies recently awarded an Engineering and Manufacturing Development (EMD) contract for the JLTV. This vehicle is designed to provide the ultimate payload, performance and protection to support our warfighters.

Engineered for extreme environments, the ProTec Series 30 HMIS is an advanced technology solution that was developed for the JLTV program. It provides outstanding off-road maneuverability and premium ride quality.

“With more than 100,000 miles of testing, the performance of the ProTec HMIS has been proven during the Technology Development phase of the JLTV program,” said Dave Damian, director, Sales and Business Development, Meritor Defense. “Our team began developing the ProTec Series 30 for the JLTV in 2005 and has been dedicated to providing the best possible solution for our warfighters.”

Earlier this year, the JLTV program entered the EMD phase, where six industry teams submitted bids for as many as three contracts. A production contract is expected late in 2015 or in early 2016.

A ProTec vehicle testing video on an up-armored HMMWV platform is available at meritordefense.com.

About Meritor, Inc.

Meritor, Inc. is a leading global supplier of drivetrain, mobility, braking and aftermarket solutions for commercial vehicle and industrial markets. With more than a 100-year legacy of providing innovative products that offer superior performance, efficiency and reliability, the company serves commercial truck, trailer, off-highway, defense, specialty and aftermarket customers in more than 70 countries. Meritor is based in Troy, Mich., United States, and is made up of more than 10,000 diverse employees who apply their knowledge and skills in manufacturing facilities, engineering centers, joint ventures, distribution centers and global offices in 19 countries. Common stock is traded on the New York Stock Exchange under the ticker symbol MTOR. For important information, visit the company’s website at meritor.com.

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Lockheed Receives Their JAGM Contract

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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