Lockheed Martin secures $225 million in defense contracts

Investing.com -- Lockheed Martin has (NYSE: LMT) been awarded two defense contracts totaling approximately $225 million for missile systems and naval weapons support.

The U.S. Department of War granted Lockheed Martin's Grand Prairie, Texas facility a $202.8 million modification to an existing contract for work on PAC-3 missiles. The modification, identified as PZ0009 to contract W31P4Q-22-C-0060, covers inspection, recertification, and repair services to return the missiles to serviceable condition.

Work on the PAC-3 missile contract will be performed in Grand Prairie, with completion expected by June 30, 2028. The Army Contracting Command at Redstone Arsenal, Alabama, is overseeing the project. At the time of the award, $52.4 million in fiscal 2022 Foreign Military Sales funds for Taiwan were obligated.

In a separate award, Lockheed Martin Rotary and Mission Systems in Moorestown, New Jersey received a $22.2 million cost-plus-fixed-fee contract for support services on Aegis Weapon Systems. The contract covers lifecycle logistics, engineering, and technical services for in-service and post-production Aegis systems on various vessels.

The Aegis support contract includes combatant ships, Coast Guard cutters, the Surface Combat Systems Center, the AEGIS Training and Readiness Center, and the Integrated Warfare Systems Laboratory. If all options are exercised, the contract value could reach $99.9 million.

Work on the Aegis contract will be performed in Moorestown, with completion expected by January 2027. If all options are exercised, work would continue through January 2031. The Naval Surface Warfare Center Port Hueneme Division in California is managing this contract, which was not competitively procured as Lockheed Martin was deemed the only responsible source that could satisfy the requirements.

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