BusinessTop Stories

Lockheed Martin Grabs Pentagon $ 23 Billion Contract

Lockheed Martin Corp received $ 22.7 billion contract from the US Department of Defense for the delivery of 255 F-35 jets, a decision made after the defense contractor was ordered to reduce the cost of its aircraft.

The contract provides Lockheed for the delivery of 106 combat jets for military use and rest will be deployed for the service of foreign military customer and non-military activities. Lockheed, the world’s leading contractor in the defense sector, is anticipated to accomplish the contract till March 2023, according to the Defense Ministry.

Lockheed also won a $ 382 million contract for the delivery of eight MH-60R helicopters to the Navy Air Systems Command. Lockheed was under stress from the Pentagon to deliver cheaper F-35 fighter jets and got sanctions if it did not cut deadlines. The defense company and the Pentagon agreed that the price of the next cargo aircraft would be approximately $ 89 million.

In a statement, Lockheed said the deal would provide essential funds for the production of F-35 and cost-cutting efforts to continue as planned. “We value hands-on action and government alliance to uphold supply chain stability, and ensure shipments persist on track to meet emerging global demand, reduce costs,” the statement said.

The defense department of the US is majorly focusing on the up-gradation of its equipment with the advanced technologies. Laser technology is what the Pentagon is presently focused on. It has repeatedly initiated budget with constant increment in laser system spending. Michael Griffin, undersecretary of defense for research and engineering also stated that there should be the inclusion of laser-system-based weapons in the hands of the US soldiers. The inclusion of laser weapons has been the most awaited dream for department’s planners and experts, and with this initiatives, it is quite optimistic about the use of laser systems in reality.

Show More

Alice Martin

Having done MBA in Finance and with over one decade of experience in the field of business, Alice leaves no chance to use his expertise when it comes to Business section. She makes sure that Business news is up-to-date with correct numbers and figures. In her leisure time, Alice loves to play and watch movies with her two-year-old son.

Related Articles

Close