Lockheed Martin Corporation (LMT) has received a five-year indefinite delivery, indefinite quantity competitive contract with a ceiling value of $94 million from the U.S. Air Force. It has asked the company to provide technical support to its hub Distributed Mission Operations Center (“DMOC”) located at Kirtland Air Force Base, New Mexico.
DMOC acts as the center for distributed virtual combat training exercises, testing and experimentation for the U.S. Air Force. In partnership with 705th Combat Training Squadron, the U.S Air Force hub integrates virtual and constructive simulations across various networks to support an artificial battle space that models weapons and Command, Control, Intelligence, Surveillance and Reconnaissance systems. This Combat Training Squadron is a part of the 505th Command and Control Wing that aims at improving warfighter capability through command and control testing, tactics development and training.
Besides assisting the Air Force in the development of tactics, techniques and procedures for tactical and operational training events, Lockheed has supported DMOC for two decades.
Based in Bethesda, Maryland, Lockheed Martin is a global security company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
We believe that over the long run the company will register a stable performance and its shareholder return will continue to be shored up by a sustained focus on debt repayment, its ongoing share repurchase program and the incremental dividend. Nonetheless, we currently remain on the sidelines given the U.S. economic fundamentals that keep the risk high for further cutbacks in defense budgets.
Currently, similar to peers Raytheon Company (RTN) and Northrop Grumman Corporation (NOC), the company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
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