State Department OKs $9.4B in Future Frigate, Ship Modernization Support Deals With Greece

The State Department has approved two foreign military sales agreements worth approximately $9.4 billion combined for frigate modernization support and four multimission surface combatant ships or future frigates that the government of Greece intends to procure.

The FMS deal for four Hellenic Future Frigates is worth $6.9 billion and the transaction for MEKO-class frigate modernization effort is valued at approximately $2.5 billion, the Defense Security Cooperation Agency said Friday.

Lockheed Martin (NYSE: LMT) will serve as the principal contractor on the proposed FMS deal for future frigates. The transaction also includes the provision of COMBATSS-21 combat management systems, vertical launch systems, Rolling Airframe Missiles BLK 2, MK-54 All Up Round Lightweight Torpedoes, software delivery, training equipment, personnel training and technical and logistics support.

Raytheon Technologies’ (NYSE: RTX) missiles and defense business, Lockheed, BAE Systems, VSE (Nasdaq: VSEC) will act as prime contractors on the frigate modernization project.

The $2.5B FMS deal also covers Close in Weapon Systems Phalanx BLK 1B Baseline 2 upgrade kits; MK 49 Guided Missile Launcher Systems, AN/SQS-56 Sonar overhauls, Elta electronic warfare and related equipment, mechanical and electrical upgrades, communications equipment, spare and repair parts, cryptographic equipment, systems integration and government and contractor engineering support.

Both transactions require the deployment of contractor and government representatives to Greece and seek to improve the European country’s ability to counter future and current threats by delivering a combatant deterrent capability to safeguard maritime infrastructure and interests.

DSCA said it notified Congress of the deals Friday.

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