Canadian Frigate Spill Over

November 11, 2008 by Dagpotter · Comment
Filed under: Canada, Contract Awards, IT, Lockheed Martin, development program 

Most large procurment programs result in many sub-contracts and work for a variety of companies other then the prime.  The Chronicle Herald of Canada reports on the expansion that Lockheed Martin is planning to do in Halifax in support of development of the Command and Control system for the new Canadian frigates. Lockheed Martin and its sub-contractors will not only be hiring a decent amount of new employees but a whole new building will be constructed to house them and complete the work. This is typical of of the spill over effect that can be achieved by these types of contract; and shows why localities are always vying for this kind of work. The downside is thought that when the work is complete there may be no follow on and then everything just shuts down. Contractors like a steady stream of work rather then a great deal for a short period of time.