WSJ: Lockheed Martin Wins Special Operations Logistics Contract
04 March 2009 - 9:29AM
Dow Jones News
By August Cole
Of THE WALL STREET JOURNAL
Lockheed Martin Corp. (LMT) won a 10-year contract worth up to
$5 billion to supply U.S. commandos with logistics support,
unseating L-3 Communications Holdings Inc. (LLL), which had
previously held the contract.
The win is the latest sign of how the biggest defense
contractors are increasingly looking to military support work to
augment their traditional aerospace engineering work. Special
operations forces tend to use different equipment from conventional
troops, and need items more quickly. Under the contract, Lockheed
will be responsible for maintaining and repairing specialized
equipment, having it ready at a moment's notice for deployment on
special missions.
For L-3, the loss is a blow because the company had been doing
the work for years and considered it among its prestigious lines of
business. A Boeing Co. (BA) team was also in the running.
(This story and related background material will be available on
The Wall Street Journal Web site, WSJ.com.)