Lockheed Martin Awarded $423 Million Multi-Year Contract for U.S. Navy Helicopter Cockpits
Owego, NY, 05-JAN-04 --
The U.S. Navy awarded Lockheed Martin [NYSE: LMT] a multi-year contract for Common Cockpits, a program worth $423 million over five years.
The agreement enables Lockheed Martin and the Navy to achieve significant economies of scale by combining five years of annual buys into one contract. The Common Cockpit supports the Navy's MH-60S and MH-60R Multi-Mission Helicopter platforms.
This multi-year procurement of the MH-60 common cockpit provides outstanding value to the Navy and to the taxpayer, said Frank Meyer, president of Lockheed Martin Systems Integration - Owego. We wish to thank Congressman Sherwood Boehlert and his staff for assisting the common cockpit contractor team, and the Navy, in arriving at this contract this year to allow the government to begin accruing savings immediately. Boehlert represents New York State's 24th Congressional District, which includes constituents who work at Lockheed Martin's facility in Owego, NY.
This contract has mutual, long-term benefit for our Navy customer and Lockheed Martin, added Jeff Bantle, vice president and general manager of Multi-Mission Solutions for Lockheed Martin. It provides unbroken delivery of cockpit kits that are receiving rave reviews from pilots and other end users in the fleet, while stabilizing workload for our manufacturing facilities, professional staff and key subcontractors.
The multi-year purchase concept ensures that manufacturing and production processes continue and gaps in production are eliminated. Another major advantage involves a planned technology insertion approach that both minimizes end-of-life parts issues and associated cost, and helps to ensure an unbroken flow of deliveries.
The Common Cockpit is currently in its sixth lot of production, with 53 cockpits fielded. The multi-year Common Cockpit contract is for 172 systems, an option for an additional 71 systems, and includes a quantity variation clause that allows Lockheed Martin to respond to surge needs. Quantities will be exercised annually for five consecutive years, in a combination of MH-60S and MH-60R cockpits, and associated spare items.
Lockheed Martin is the systems integrator for the MH-60R and provides the cockpit, which is common to all MH-60S and MH-60R helicopters. Sikorsky designs and manufactures the MH-60S and MH-60R aircraft and is responsible for the mechanical and electrical modifications on the airframe.