Headquartered in Bethesda, MD, the prime defense contractor
Lockheed Martin Corp.
) was the clear winner in yesterday's contract appropriations made
by the Department of Defense (DoD). Lockheed won three contracts
worth $606.2 million in total.
The largest of the three contracts, worth $452.0 million, was
awarded to Lockheed Martin Space Systems Co. Per the contract, the
company will provide reentry system/reentry vehicles (RS/RV)
subsystem support as well as procure MMIII RS/RV subsystem and
related support equipment.
Lockheed will provide sustaining and maintenance engineering, aging
surveillance, modification of systems and equipment, software
maintenance, developmental and production engineering. Work is
expected to be complete by Jun 4, 2022.
The second contract, worth approximately $134.2 million, also went
to Lockheed Martin Space Systems Co. This modification contract
entitled Lockheed to provide highly specialized services to support
Ballistic Missile Defense System flight test activities using the
contractor's developed target hardware. The Missile Defense Agency
is the contracting activity and the task has a completion date of
Dec 8, 2018.
The third contract, a minor one worth $20.0 million, calls for
Lockheed to provide sustaining engineering services in support of
the Consolidated Automated Support System family of testers. Work
under this contract is expected to be completed in Jun 2019.
Although the threat of sequestration still lurks over this defense
major, negatively impacting the company's first quarter 2014 sales,
Lockheed Martin continues to win both big and small contracts.
Recently, Lockheed outmatched its rival bidder
) to clinch a big ticket contract for building a radar system to
track space junk. The contract, valued at a whopping $915 million,
involves the creation of a radar system at the Marshall Islands
located in northern Pacific Ocean.
The sequester that went into effect at the start of Mar 2013 will
cut spending by a total of approximately $1.1 trillion over the
eight-year period from 2013 through 2021. Yet, Lockheed Martin
expects to perform well in 2014 thanks to technological
innovations, big contracts and acquisitions. Lockheed Martin
reaffirmed its top-line expectation for 2014 in the range of
$44,000 million to $45,500 million.
Currently, the company carries a Zacks Rank #2 (Buy). Other
well-placed defense operators include Zacks Ranked #1 (Strong Buy)
) and Zacks Ranked #2 (Buy)
Leidos Holdings, Inc.
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