Lockheed in CIO-SP3 Program - Analyst Blog

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Defense contractor, Lockheed Martin Corporation ( LMT ) has been selected as one of the 54 companies to compete for task orders with a maximum value of $20 billion on a Government-Wide Acquisition Contracting (GWAC) vehicle.

The contracting vehicle, known as Chief Information Officer Solutions and Partners 3 (CIO-SP3) program, is available to all federal agencies to procure Indefinite Delivery/Indefinite Quantity contracts for a wide range of information technology ("IT") and health IT products, services, and solutions. It is managed by the National Institutes of Health Information Technology Acquisition and Assessment Center ("NITAAC"). NITAAC is a federal Executive Agent authorized by the Office of Management and Budget ("OMB") to administer GWACs for information technology procurement.

Lockheed Martin is well poised to effectively and efficiently meet infrastructure, applications, and IT management services and provide the maximum benefit. With recognized best practices, standardized processes, tools and systems, the company's main goal is to provide low-risk technology solutions that provide flexibility and lower cost in service delivery to the federal agencies.

Lockheed Martin is working well with respect to providing IT products and services. Recently, the company received an Enterprise Standard Architecture ("ESA") IV contract to supply managed information technology services and secure technology solutions. If all the options are exercised, the total value of the contract would be $496 million. Per the contract, the company will provide IT and data solutions which include hardware and software acquisition, desktop maintenance and support; overall system security; help desk services, disaster recovery planning and preparation and data centers at multiple locations.

We expect the company to post a stable performance due to its leveraged presence in the Army, Air Force, Navy and IT programs. However, we currently remain on the sidelines due to the impact of the Euro-crisis on U.S. economic fundamentals that keeps the risk high for further cutbacks in defense budgets.

The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock. The company mainly competes with Northrop Grumman Corporation ( NOC ) and Raytheon Co. ( RTN ).


 
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
 
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
 
RAYTHEON CO (RTN): Free Stock Analysis Report
 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: LMT , NOC , RTN

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