Lockheed Martin Corp.'s (LMT - Free Report) unit, Mission Systems and Training, has won a contract from the U.S. Navy to continue making technological advancements in its electronic warfare portfolio in order to keep the warfighters updated. The contract has been valued at $148.9 million.
Per the contract, Lockheed Martin will produce the Surface Electronic Warfare Improvement Program ("SEWIP") Block 2 systems. It includes options for another four years for upgrading the fleet's electronic warfare capabilities so as to ensure that the warfighters can counter evolving threats.
Moreover, Lockheed Martin will provide supplementary systems to upgrade the AN/SLQ-32 systems on U.S. aircraft carriers, cruisers, destroyers, and other warships. These systems will have the potential to determine if it is being tracked by enemy sensors.
About SEWIP Block 2
SEWIP Block 2 is the latest version of the "blocks" that the Navy is pursuing for its shipboard electronic warfare system. The original AN/SLQ-32 system was developed by Raytheon Company (RTN - Free Report) . It uses radar technology for the early warning, identification and tracking of enemy threats. The system is fully compliant with the Navy's Product Line Architecture strategy and aids the rapid introduction of advanced technology into the fleet.
Why Lockheed Martin?
In Sep 2009, Lockheed Martin received a contract to produce a preliminary design for the SEWIP Block 2. Since then, the company has received Low Rate Initial Production (LRIP) contracts for another 38 units. Of these orders, 22 units have been delivered to the Navy to date, as per the contract schedule.
The SEWIP Block 2 system is vital to the Navy's operation as threats are becoming increasingly complex and advanced. The company's electronic warfare systems feed information to the warfighter, thereby allowing it time to respond even before an attack has been initiated.
About the Company
Lockheed Martin is the largest U.S. defense contractor with a platform-centric focus that guarantees a steady inflow of follow-on orders from its leveraged presence in the U.S. Army, Air Force, Navy and IT programs.
The company faces intense competition for its broad portfolio of products and services. In particular, it faces competitive pressure from peers like The Boeing Co. (BA - Free Report) and Northrop Grumman Corporation (NOC - Free Report) .
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