Lockheed Martin, Navy Destroyer Contract

Monday, January 12, 2009

Lockheed Martin [NYSE: LMT] was awarded a $15m firm-fixed-price contract as part of the U.S. Navy's Modernization Program for the DDG 51 Arleigh Burke-class destroyers. The contract, for initial Machinery Control System (MCS) shipsets and related equipment, includes options and engineering services which, if exercised, would bring the cumulative value to $51.5m.

MCS provides centralized and remote control of selected machinery on U.S. Navy DDG 51-class ships. The new contract follows three earlier awards (January and November 2007, and April 2008) to modernize computer programs, provide engineering services, backfit software and support integration of hull, mechanical and electrical systems aboard existing Arleigh Burke-class ships. Work under the latest contract is scheduled for completion by April 2010.

"This modernization effort will replace aging equipment that is costly to support, trim the number of machinery control consoles and reduce watch stander workload to operate the stations," said Jim Craig, Vice President of Ground, Maritime and Civil Solutions for Lockheed Martin Simulation, Training & Support. "This contract will yield significant savings in lifecycle support costs for the Navy, and it continues our long history of providing machinery control systems for its Surface Combatant ships."

The DDG 51 Arleigh Burke-class guided missile destroyers are 506 ft in length and have a 62 foot beam. They are driven by two shafts powered by four LM2500 gas turbine engines with a maximum speed in excess of 30 knots. The ships have a cruising range of 4,400 nautical miles at 20 knots and a crew of about 30 officers and 302 enlisted personnel. Lockheed Martin provides marine engineering control systems for all Arleigh Burke-class destroyers, and since 1972 has delivered more than 750 control consoles used in U.S. Navy destroyers, cruisers, frigates, support ships and submarines.


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