Lockheed Martin Corporation
) has been selected as one of the seven awardees for a one-year
indefinite delivery/indefinite quantity ("IDIQ") contract for Test
and Evaluation Mission Support Services ("TEMSS") program by the
U.S. Defense Information Systems Agency ("DISA"). The contract
includes four one-year options with a potential ceiling value of
$800 million for all awardees.
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Lockheed will be playing its role by supporting the services
through a 3 months firm fixed price phase-in task worth $0.4
million. The company will fulfill DISA's mission by providing
network, computing infrastructure and enterprise services for
sharing information immediately and helping military and civilian
agencies to make quick decision. It will pursue opportunities to
provide testing, engineering, logistic, administrative, and
operations and maintenance services.
The main reason for choosing Lockheed as one of the seven awardees
is its proven expertise in Command, Control, Communications,
Computers and Intelligence (C4I), information assurance,
information technology and automated information systems for its
various categories of customers, which include individual customers
and joint entities. The company's cyber security, information
technology and information assurance are supported by several labs,
test facilities and programs operated by the company.
Additionally, DISA will be aided by the Cyber Security Technology
Alliance formed by the company that assembles leading technology
providers to work together on solutions for early threat detection
and protection using best practices, hardware, software and tools.
The other contractors include Alion Science & Technology,
McLean, TASC Inc. Chantilly, Science Applications International
Corp., McLean, ManTech International Corp., Fairfax, Oberon
Associates Inc., Manassas (part of
CGI Group Inc.
)), and American Systems Corporation, Chantilly.
Earlier also, the company has received awards from DISA due to its
proven capabilities. In June 2012, the company received a contract
from DISA to manage the transformation of the Department of
Defense's global data network. The contract with a ceiling value of
$4.6 billion would run for three years and includes two two-year
Lockheed Martin is the largest defense contractor in the world. The
company's customer base includes the U.S. government, foreign
governments, and other commercial buyers. The company's
platform-centric focus guarantees a steady inflow of follow-on
orders from a leveraged presence in the Army, Air Force, Navy and
IT programs. Also, going forward, its shareholder return will
continue to be boosted by focusing on debt repayment, its ongoing
share repurchase program and incremental dividend.
Recently, Lockheed Martin Corporation posted second-quarter 2012
continuing earnings of $2.38 per share, beating the Zacks Consensus
Estimate of $1.92. This was also higher than the year-ago quarterly
earnings of $2.06. On the revenue front, Lockheed Martin reported
quarterly net sales of $11.9 billion, beating the Zacks Consensus
Estimate of $11.3 billion.
Northrop Grumman Corporation
), the company presently retains a short-term Zacks #2 Rank (Buy).
We have a long-term Outperform recommendation on the stock.