LOCKHEED MARTIN AWARDED ADDITIONAL $5 BILLION IN MULTIYEAR CONTRACT TO BUILD 60 F-22 RAPTORS
Marietta, Ga., 31-JUL-07 -- Lockheed Martin [NYSE: LMT] today received an additional $5 billion from the U.S. Air Force for three lots of F-22 Raptor air dominance fighters. This brings the total multi-year contract value to $7.3 billion and extends the production of the aircraft through the year 2011.
The U.S. government previously awarded $2.3 billion of the contract to buy long lead- time parts and maintain continuous manufacturing flow. The aircraft will be built at a rate of 20 per year, with deliveries starting in late 2008.
The multi-year contract allows us to generate savings for the taxpayer and continue to deliver the most capable aircraft in the world to the men and women defending our nation, said Larry Lawson, Lockheed Martin Aeronautics executive vice president and F-22 program general manager. We have worked with our industry partners and the Air Force to make this a win-win for everyone. The F-22 provides a revolutionary capability that will help to deter aggression for the next four decades.
This contract award is for 60 aircraft and brings the number of Raptors on order to 183. According to the U.S. Air Force and verified by a recent RAND Corporation study, the multi-year contract is estimated to save approximately $400 million over Lots 7, 8 and 9 (60 aircraft), compared to a corresponding annual procurement program. This equates to a savings of $6.85 million per aircraft. To date, 105 Raptors have completed final assembly at the Lockheed Martin facility in Marietta, Ga. So far, 99 Raptors have been delivered to the Air Force. Raptors are built at a rate of approximately two per month.
The F-22 is produced in partnership with Boeing and Pratt & Whitney with parts and subsystems provided by nearly 1,000 suppliers in 44 U.S. states. F-22 production takes place at Lockheed Martin Aeronautics facilities in Marietta, Ga.; Fort Worth, Tex.; Palmdale, Calif.; and Meridian, Miss., as well as at Boeing's plant in Seattle, Wash. Final assembly and initial flight testing of the Raptor occur in Marietta.
Headquartered in Bethesda, Md., Lockheed Martin employs about 140,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products, and services. The corporation reported 2006 sales of $39.6 billion.