Lockheed Martin Corporation
) has received an indefinite delivery, indefinite quantity
contract worth $146 million from the U.S. Army. Per the contract,
Lockheed will design an advanced Joint Land Component
Constructive Training Capability (JLCCTC) system. The contract
period spans for more than five years.
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The JLCCTC is a modeling and simulation software capability that
provides an appropriate level of model and simulation resolution
to support the Army. This system prepares dummy operational
scenarios, thereby preparing and positioning commanders and their
staff to direct military operations.
This system puts together seven current command and battle staff
training tools into a single system. Then it presents fake enemy
forces in front of commanders. Such exercises help sharpen
decision-making skills during high pressure military missions.
This simulation-based training system will prepare Army, joint
and coalition leaders to act in the evolving operational
environment with conviction.
Also, Lockheed has developed the Warfighter's Simulation (WARSIM)
component of JLCCTC. WARSIM as a part of JLCCTC is a group of
software and hardware that simulates the complex interactions of
the battlefield. In order to create a realistic training
environment, it assimilates ground, air, ballistic missile and
intelligence models with mission command systems.
In 2012, WARSIM supported 14 training exercises and trained more
than 22,000 commanders, their staffs and units. Lockheed's
skilled industry team has experience with all components that are
involved in the system. Going forward, Lockheed's expertise in
this area would bring in more such training contracts for the
Based in Bethesda, MD, Lockheed Martin is a global security and
aerospace company principally engaged in the research, design,
development, manufacture, integration and sustainment of advanced
technology systems, products and services. Lockheed remains a key
player within the military space and is expected to register a
stable performance due to a leveraged presence in the Army, Air
Force, Navy and IT programs.
However, defense cutbacks on high-cost platform programs and
over-exposure to the Department of Defense budget remain a matter
of concern for Lockheed as well as other industry players like
General Dynamics Corporation
The Boeing Company
). The company presently retains a short-term Zacks Rank #3
In the near term, we would advise investors to accumulate its
short-term Zacks Rank #2 (Buy) peer
Wesco Aircraft Holdings, Inc.