Press Release: Lockheed Martin Wins $41 Million U.S. Defense Contract To Sustain the Global Transportation Network
Filed under: Contract Awards, Department of Defense, Editorial, Lockheed Martin
Lockheed Martin [NYSE: LMT] has won a $41-million contract from the U.S. Transportation Command (USTRANSCOM) to extend sustainment of the Global Transportation Network (GTN) command and control system. The sustainment contract brings the total value of the GTN contract since its award to Lockheed Martin in 1995 to $475 million.
GTN is a web-based, automated information system that provides a family of transportation users and service providers – in both the U.S. Department of Defense and commercial sectors – with near real-time in-transit visibility and command and control capabilities. Customers anywhere in the world can access and employ the integrated system for transportation and deployment information, which enables them to identify the location and scheduling of materiel, deployed forces and support personnel. GTN ensures effective execution of operations by helping logistics commanders make better plans and decisions during peace and war.
Read more
US announces Israeli JSF buy
Filed under: Contract Awards, Department of Defense, FMS, Israel, Lockheed Martin, Military Aviation, production program
The US Department of Defense announced that Israel has agreed to buy 25 F-35 Joint Strike Fighters (JSF) and support. The contract is worth about $15 B. While eight partner countries will also fly the JSF, Israel becomes the first FMS customer. The JSF will be a short take-off and landing aircraft to replace F-16 and AV-8 aircraft.
See the story at Rueters.com.
DTRA awards IT modernization contract
Filed under: Contract Awards, DTRA, IT, Lockheed Martin, logistics
Lockheed Martin won an ID/IQ contract to modernize the IT systems at the Defense Threat Reduction Agency (DTRA). If all options on this five year contract are executed it could be worth over $45 M. Like all of these types of contracts there may be none, a little or all work awarded. The long term goal is to unify the existing legacy systems with one, modern one.
See RTTNews.com for the story.
KC-X haunts CSAR-X
Filed under: Agusta Westland, Boeing, Contract Awards, Department of Defense, GAO, Lockheed Martin, Military Aviation, Proposal, Protest, Sikorsky, U.S. Air Force, commercial aviation, production program
With the decision to punt on the KC-45 recompete by the current administration there are some worries that this might affect the CSAR-X contract as well. Last word was that the announcement of who won the new GAO ordered competition would come sometime this Fall. Now some of the competitors; Sikorsky, Augusta Westland and Boeing; are concerned that perhaps this decision will delay the announcement of the winner. Boeing had won a contract only to have a protest upheld by GAO for the USAF not applying their criteria correctly.
See this short AP article for more.
THAAD Video
Filed under: Lockheed Martin, MDA, Raytheon, development program, missile defense
As a follow-up to the post about UAE buying THAAD, here is a video from defensenet showing a recent test firing.
DoD buys vehicle parts management system
Filed under: Contract Awards, DLA, Department of Defense, IT, Lockheed Martin, logistics
Lockheed Martin was awarded yesterday a potential 10 year contract worth over $5 B to set up and manage a system to provide auto parts to the various services. The system will be able to provide, track and ship necessary vehicle parts all over the world to the Army, Air Force, Navy and Marines. The system will utilize a proprietary software system that Lockheed Martin developed and is currently being used to support aircraft. Despite the size of the award the contract will employ only about thirty personnel.
See the Philadelphia Business Journal for more details.
Reports that UAE to buy THAAD system
Filed under: Congress, Contract Awards, Department of Defense, FMS, Lockheed Martin, Raytheon, UAE, missile defense, production program
Update - I was wrong in my original surmising that the UAE would buy PATRIOT. They are going whole hog and asking for THAAD. THAAD is a much more expensive, long range ballistic missile defense system. The US Army has not formally fielded it yet. That would explain the high price tag. Rueters report here.
Rueters is reporting that the US Department of Defense will inform Congress that the UAE has asked to purchase a PATRIOT missile system. The estimated cost is $7 B. This would be to provide missile defense against Iranian systems. Congress must approve the sale, normally this is a formality, although it can be more complicated for advanced systems. Obviously such a large contract will be a boon to Raytheon and Lockheed Martin.
The article is here.
Defense spending to continue in 2009
Lockheed Martin’s CFO, Bruce Tanner, gave an interview to CNNMoney.com. His key point is that with either the election of Senator Obama or McCain there will be no real downturn in defense spending. Many have felt that the Democrat might slash defense spending in order to pay for the other programs he has proposed. The last two Democratic administrations, Carter and Clinton, are not well remembered within the Department of Defense due to their reduction in funding. Both of these administrations cut back heavily on spending, especially in the area of investment for new weapon systems. Read more
Army buys a lot of Hellfires
Filed under: Contract Awards, Lockheed Martin, Military Aviation, U.S. Army, production program
The US Army awarded Lockheed Martin a contract to produce Hellfire missiles. These are normally fired from AH-64 and OH-58D helicopters and some Air Force aircraft. The missile is used by the US and its Allies. In Iraq and Afghanistan the Army has been using these with great effect to strike a variety of targets. The contract is valued at over $350 M and will purchase 1400 missiles. It is estimated that over 6000 have been used to date in the Global War on Terror.
For more see the Orlando Sentinal.
US Air Force looks to replace C-130E aircraft
Filed under: Federal Budget Process, Lockheed Martin, Military Aviation, Proposal, U.S. Air Force, U.S. Marine Corps, production program
The US Air Force has begun talks with Lockheed Martin on executing a multi-year procurement contract for C-130J aircraft. These would replace the Air Forces and other Service’s current inventory of C-130E Hercules. The contract could be for up to 110 aircraft and have a value over time of $6 B. Multi-year procurements must be authorized by Congress and they are typically done for aircraft and other large systems in order to save money over time.
For more see The Guardian’s Business Feed.
India moves to limit middlemen in contracts
Filed under: Boeing, D'Assault, EADS, FMS, India, Lockheed Martin, MiG, Military Aviation, Proposal, SAAB, production program
India already loosened their offset requirements leading to progress on the new fighter contract. Now the government moved to limit the use of Indian representatives or “agents” in helping the foreign companies with their bid. The six teams that submitted proposals are moving to line up Indian companies to support their fabrication and delivery of the aircraft. By limiting these agents the Indian government hopes to make the process more open and increase the ability of non-Indian companies to use their industry.
See Central Chronicle for more.
DMS support contract awarded
Filed under: Contract Awards, Department of Defense, IT, Lockheed Martin, logistics
Lockheed Martin was awarded the contract to support the Defense Messaging System (DMS). This is a facility at the Pentagon that helps communicate with the disparate elements of the US Armed Forces. The contract is for two years and worth over $5 M. Lockheed Martin is the incumbent having provided this support for more than ten years already.
For more see this at TMCNet.com.
Lockheed Martin to train intelligence analysts
Filed under: Contract Awards, Lockheed Martin, NGIA, logistics, space, training
Lockheed Martin was awarded a contract from the National Geospatial Intelligence Agency (NGIA) to provide training to its employees and other intelligence analysts across DoD. See a press release here. The contract has a value of $32 M and is an option on an existing contract. Lockheed Martin is responsible for running the in-house training for the agency. NGIA is what used to be called the Defense Mapping Agency (DMA) and provides maps, charts and other information to the US defense services and other agencies.
Iraqi Air Force to expand
Filed under: Contract Awards, Lockheed Martin, Military Aviation, logistics, production program
According to reports the Iraqi government is planning on buying six C-130J aircraft and associated support equipment. See an article here. The total contract could be worth around $1.5 B. The sale would be handled through the Pentagon’s Defense Security Assistance organization.
LMT reports earnings
Lockheed Martin continued the string of defense contractors reporting good earnings as the rest of the economy struggles. See a press release here. Lockheed had a 13% increase in profit over the last year with a solid increase in earnings. The company also is starting to sound cautious about the expected downturn if the Democrats win the White House in November. Even if the defense budget is cut dramatically it will take a few years for the effects to be felt within the suppliers.
USMC buys sights for AH-1 fleet
Filed under: Contract Awards, Lockheed Martin, Military Aviation, U.S. Marine Corps, development program
The USMC awarded Lockheed Martin a contract to build advanced, new sights for the AH-1 Cobra helicopter. See a story here. The $50 M contract will begin producing the sights in 2010. The AN/AAQ-30 Target Sight System is a multi-sensor system that will also provide targeting data and guidance for the Hellfire missile system. The US has used attack helicopters with great effect in Iraq and Afghanistan as they can provide a great deal of firepower at short notice. The new sight will extend the engagement range of the aircraft.
JTRS AMF subcontract awarded
Filed under: Contract Awards, IT, Lockheed Martin, Northrop Grumman Corp., development program
Lockheed Martin, who won the next increment of the JTRS AMF, awarded a subcontract to Northrop Grumman to provide technology to support production. See an article here. Earlier this year Lockheed Martin was named the winner of the JTRS AMF radio contract. They now have given Northrop Grumman a subcontract to lead the small airborne radio part of the system.
Its just not defense
Filed under: Contract Awards, IT, Lockheed Martin, SETA, U.S. Dept. of Homeland Security, logistics
Lockheed Martin was awarded a contract by the Department of Homeland Security to provide human resources support to the Transportation Security Administration (TSA). See an article here. The contract could last eight years and have a value of over $1 B dollars. The company will provide support to all aspects of the TSA’s personnel system.
JSF spreads the wealth
Filed under: Contract Awards, Konsberg, Lockheed Martin, Military Aviation, Norway, development program, logistics, production program
Lockheed Martin awarded a Norwegian company, Kongsberg, a contract to make parts for the F-35 JSF. See an article here. In an unrelated matter Norway is looking at buying either JSF or Swedish Gripen aircraft to replace their F-16 fleet. Kongsberg will get the contract worth up to $1 B or more even if Norway does not buy the JSF.
Air Force executes JASSM production option
Filed under: Alabama, Contract Awards, Lockheed Martin, U.S. Air Force, production program
Lockheed Martin was awarded a contract by the US Air Force for production of 111 Joint Air to Surface Standoff Missile (JASSM) and related services. The contract has a value of $107 M. See the press release here. The missiles will be produced at the company’s facility in Troy, AL. The JASSM has now had over a 1000 units ordered with a production goal of 4,000. For more on the system you can read Wikipedia here.
C-5 upgrade contract spills over
Filed under: Contract Awards, Goodrich, Lockheed Martin, Military Aviation, U.S. Air Force, logistics, production program
Goodrich announced that they received a subcontract from Lockheed Martin to provide engine pylons and casings for the C-5 Upgrade Program. See a press release here. The contract is worth $600 M and indicates the size of the total program. As the US is now dependent on a fleet of C-5 and C-17 aircraft continued extension of the life of the C-5 is critical to supporting combat operations in Afghanistan and Iraq.
Air Force orders HC/MC-130 aircraft
Filed under: Contract Awards, Lockheed Martin, Military Aviation, U.S. Air Force, production program
The US Air Force placed a contract wit Lockheed Martin for six HC/MC-130J aircraft. This $470 M award was using the FY08 Advanced Procurement with the rest of the order being paid for in FY09. See a press release here. These aircraft will most likely support operations by US Special Forces Command, and are a variant of the C-130J that has been purchased by the USAF, Marines and foreign companies for the last few years.
UK to privatize aircrew training
Filed under: England, Lockheed Martin, Military Aviation, VT Group, training
Bump - Further details on the contract the UK signed with Ascent, the joint venture of Lockheed and VT, to conduct aviation training have come out. See this article for some of the new details. It is a 25 year contract with the contractor that will be implemented incrementally as the current training program completes.
According to this short report, the UK is ready to transition all of its pilot training to a private contractor. This is for the Royal Navy, Royal Air Force and Army rotary wing pilots. If this is true it represents a major change in how training has been done in the past. One would have to assume that there are major cost savings in this transition away from maintaining their own aircraft and training staff. Beyond saying that Lockheed Martina and VT will carry out the contract no details were given as to how it would be done.
Lockheed EVMS not up to snuff
Filed under: Contract Awards, Department of Defense, Lockheed Martin, Military Aviation, development program
This article in the UK’s Gaurdian newspaper says that DoD is unhappy with the accuracy of Lockheed Martin’s Earned Value Management System (EVMS). This may lead to reduced award fee to the contractor. Earned value is defined in this paper, here, as “It is an objective measurement of how much work has been ccomplished on a project. It compares the value of the work done with what was budgeted to do that work and what was actually spent to do it.” It is very important to managing Cost Plus contracts as the money paid to the contractor is based on their performance. Read more
First THAAD Battery stands up
Filed under: Lockheed Martin, MDA, U.S. Army, development program, missile defense
This is not a defense procurement issue but I have fond memories of working with THAAD ten years ago. The First Unit Equipped (FUE), Alpha Battery/4th Air Defense Artillery Regiment, 11th Air Defense Artillery Brigade, 32nd Army Air & Missile Defense Command, was activated on 28 May. See a press release from Lockheed Martin here. THAAD is the Army’s long range ballistic missile defense system, layering on top of the existing PATRIOT systems.
