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Lockheed Wins $1B Navy Helicopter Sensors Contract; Dan Spoor Comments

Lockheed Martin Corp. (NYSE: LMT) has won a $1.05 billion U.S. Navy contract to provide the branch with digital cockpits, mission systems and sensors for helicopters.

The Bethesda, Md.-based contractor said Congress approved the five-year contract and required it to produce double-digit cost savings for the Defense Department.

Dan Spoor, vice president of aviation systems, said the Pentagon will save 10 percent in spending per year because of the contract’s multi-year structure.

The company will provide 162 cockpits, mission systems and sensors for the Navy’s MH-60R “Romeo, ” used for anti-surface and anti-submarine warfare.

The company will also provide 62 digital cockpits to help the Navy complete its program of record for MH-60S “Sierra, ” used for ship resupply, search and rescue and close-in ship defense.

Rear Adm. Paul Grosklags, vice commander of Naval Air Systems Command, said the branch has more than 300 Romeos and Sierras in its overall helicopter fleet.

Integration and installation will occur in Owego, N.Y. and the Pentagon said in a release that it expects work to finish in June 2018.

Stratford, Conn.-based Sikorsky Aircraft makes the Romeo and Sierra.

In January, a joint venture of Lockheed and Northrop Grumman Corp. (NYSE: NOC) won a $181 million contract to develop fire control radars for Apache helicopters.

Taiwan will purchase 15 of the radars and is the first international customer for the radars.

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