United Launch Services, LLC or ULS, jointly owned by
The Boeing Company
Lockheed Martin Corporation
), has won a contract, worth approximately $1.1 billion or $1,088
million, from the U.S. Department of Defense (DoD). Per the
agreement, the company will provide launch vehicle configurations
support to the U.S. Air Force (AF) and the National
Reconnaissance Organization (NRO) under the Evolved Expendable
Launch Vehicle (EELV) production services.
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ULS will configure several launch vehicles, including AF Atlas V
401, AF Atlas V 501, AF Delta IV 4,2, AF Delta IV 5,4, NRO
Atlas 401, NRO Atlas 541, and a NRO Delta IV 5,2. This activity
will take place in Centennial, Colo. and is scheduled to be
completed by 2015.
ULS is a subsidiary of United Launch Alliance, LLC, a 50-50 joint
venture between Boeing and Lockheed Martin. United Launch
Alliance offers U.S. affordable, consistent, and assured access
to space for U.S. government missions. It has three launch
vehicles - Atlas V, Delta IV and Delta II.
EELV program, a U.S. AF's space lift modernization program, was
incorporated in 1994 to make space launch vehicles more
cost-effective and reliable. The program is replacing the
existing fleets with two families of launch vehicles - the Boeing
Delta IV and Lockheed Martin Atlas V. With the utilization of
this effort, the cost of launch of the Atlas, Delta and Titan
space launch systems is expected to be reduced by 25%.
ULS has a long-standing business association with the U.S.
defense establishments and tries to meet its commitments in terms
of maintaining products and services standard along with delivery
timing. In Apr 2013, ULS received a contract, worth $16.9
million, from the DoD to provide EELV launch capability services.
Steady flow of contracts will enable the company to improve its
Currently, Boeing and Lockheed Martin have a Zacks Rank #2 (Buy)
and a Zacks Rank #3 (Hold), respectively. Other stocks from the
sector that are presently performing well include
Alliant Techsystems Inc.
) with a Zacks Rank #2 (Buy).