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Lockheed Martin Unit Wins 2 Air Force Deals worth $217M
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Lockheed Martin Corp.’s (LMT - Free Report) unit, Space Systems Co., has won two modification contracts from the U.S. Air Force worth a total $217.0 million. Both the contracts were awarded by the Air Force Space and Missile Systems Center, Los Angeles Air Force Base, CA.
Contract Details
The first one, worth $127.5 million, includes logistics support for the Space-Based Infrared System (“SBIRS”). Per the modification, Lockheed Martin will provide services for operations, and sustainment and support factory infrastructure for the SBIRS program.
Under the second contract, worth $89.5 million, the company will execute acoustic testing and verification for Advanced Extremely High Frequency (“AEHF”) satellite vehicles 5 and 6 as a risk reduction effort.
The SBIRS program is considered among the nation’s highest-priority space programs. It is designed to provide worldwide, persistent, infrared surveillance capabilities such as early warning of missile launches. It simultaneously supports other missions including missile defense, technical intelligence and battle space awareness.
On the other hand, AEHF provides improved global, survivable, protected communications capabilities for strategic command and tactical warfighters operating on ground, sea and air platforms. The company’s AEHF military satellite program is shaping up well with AEHF-4, AEHF-5 and AEHF-6 projected to launch in 2017, 2018 and 2019, respectively. According to the company, AEHF is the most secure communication satellites used by the government.
About Space Systems
Space Systems Co. (“LMSSC”) is a major operating unit of Lockheed Martin’s Space Systems segment. It designs, develops, tests, manufactures and operates a full spectrum of advanced-technology systems for national security, and military, civil government and commercial customers.
Space Systems continues to capture the government’s attention as the U.S. Department of Defense (“DoD”) is expected to focus consistently on enhancing its capabilities to counter emerging security threats. Moreover, the latest budget proposal allocates $1.8 billion for space launch in fiscal 2017. It also seeks to increase spending in several key areas including cybersecurity, electronic warfare and improved security for crucial U.S. satellites.
Space Systems enjoys a steady flow of contracts from the DoD. Last week, it won a modification contract, valued at $395 million, for the development of the GPS III Space Vehicles 09 and 10. (Read more: Lockheed Martin Wins $395M Deal for GPS III SV 09 and 10)
Other Companies in the Space
Apart from Lockheed Martin, companies like The Boeing Co. (BA - Free Report) , Raytheon Company and Northrop Grumman Corporation (NOC - Free Report) also enjoy a steady stream of contracts from the U.S. DoD for military space programs.
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Lockheed Martin Unit Wins 2 Air Force Deals worth $217M
Lockheed Martin Corp.’s (LMT - Free Report) unit, Space Systems Co., has won two modification contracts from the U.S. Air Force worth a total $217.0 million. Both the contracts were awarded by the Air Force Space and Missile Systems Center, Los Angeles Air Force Base, CA.
Contract Details
The first one, worth $127.5 million, includes logistics support for the Space-Based Infrared System (“SBIRS”). Per the modification, Lockheed Martin will provide services for operations, and sustainment and support factory infrastructure for the SBIRS program.
Under the second contract, worth $89.5 million, the company will execute acoustic testing and verification for Advanced Extremely High Frequency (“AEHF”) satellite vehicles 5 and 6 as a risk reduction effort.
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What are SBIRS & AEHF?
The SBIRS program is considered among the nation’s highest-priority space programs. It is designed to provide worldwide, persistent, infrared surveillance capabilities such as early warning of missile launches. It simultaneously supports other missions including missile defense, technical intelligence and battle space awareness.
On the other hand, AEHF provides improved global, survivable, protected communications capabilities for strategic command and tactical warfighters operating on ground, sea and air platforms. The company’s AEHF military satellite program is shaping up well with AEHF-4, AEHF-5 and AEHF-6 projected to launch in 2017, 2018 and 2019, respectively. According to the company, AEHF is the most secure communication satellites used by the government.
About Space Systems
Space Systems Co. (“LMSSC”) is a major operating unit of Lockheed Martin’s Space Systems segment. It designs, develops, tests, manufactures and operates a full spectrum of advanced-technology systems for national security, and military, civil government and commercial customers.
Space Systems continues to capture the government’s attention as the U.S. Department of Defense (“DoD”) is expected to focus consistently on enhancing its capabilities to counter emerging security threats. Moreover, the latest budget proposal allocates $1.8 billion for space launch in fiscal 2017. It also seeks to increase spending in several key areas including cybersecurity, electronic warfare and improved security for crucial U.S. satellites.
Space Systems enjoys a steady flow of contracts from the DoD. Last week, it won a modification contract, valued at $395 million, for the development of the GPS III Space Vehicles 09 and 10. (Read more: Lockheed Martin Wins $395M Deal for GPS III SV 09 and 10)
Other Companies in the Space
Apart from Lockheed Martin, companies like The Boeing Co. (BA - Free Report) , Raytheon Company and Northrop Grumman Corporation (NOC - Free Report) also enjoy a steady stream of contracts from the U.S. DoD for military space programs.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>