Lockheed Martin Corp. (NYSE:LMT), a global security and aerospace company, said it received a $1.05 billion five-year contract from U.S. Navy to provide more than 200 digital cockpits and integrated mission systems and sensors for the Navy MH-60R "Romeo" and MH-60S "Sierra" helicopters.
Specifically, the new multi-year contract includes 162 cockpits, integrated missions systems and sensors for MH-60R "Romeo," an anti-surface and anti-submarine warfare helicopter.
It also funds 62 digital cockpits to complete the Navy's program of record for Sierra aircraft, used for ship-to-ship cargo resupply, search and rescue, and close-in defense of Navy ships.
[Related -Lockheed Martin Corporation (NYSE:LMT): How A Small Budget Deal Impacts Defense Contractors?]
A multi-year procurement contract such as this one must meet rigorous criteria before being approved by Congress, including being able to demonstrate double-digit cost savings.
Lockheed Martin provides the digital cockpit common to the MH-60R and MH-60S, and integrates the mission systems and sensors aboard the MH-60R helicopter in Owego, New York. Both aircraft are designed and manufactured by Sikorsky Aircraft, Stratford, Connecticut.
The company said this contract award ensures uninterrupted, on-time deliveries of the MH-60R and MH-60S helicopter to the U.S. Navy fleet. Plus the multi-year structure, versus an annual contract, allows the company to provide its customer with more than 10% savings annually, surpassing Pentagon cost predictions.
[Related -Lockheed Martin Corporation (LMT): iStock's #1 Growth And Income Stock]
LMT closed Thursday's regular session down 0.21% at $90.15. The stock has been trading between $66.36 and $91.61 for the past 52 weeks.