Lockheed Martin Corporation
) 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
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
LOCKHEED MARTIN (LMT): Free Stock Analysis
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