Lockheed Receives $186M Modification for MDA Aegis Combat System Support

Lockheed Martin (NYSE: LMT) will perform additional baseline upgrades to the Aegis ballistic missile defense system under a potential one-year, $185.6M contract modification.

The company will further update the weapon’s Baseline 5.4 and support flight and ground tests, future studies, post-certification engineering and in-service activities, the Department of Defense said Thursday.

The modification has a base value of $139.7M and a three-month option period that would increase the total contract value to $3.21B. Work under the base period will occur through July 31, 2020, and will extend by three months if the agency exercises the option.

MDA will initially obligate $12M in funds from various agency accounts for fiscal 2018 through fiscal 2020.

Aegis is designed to engage land targets, submarines and surface vessels simultaneously. The system uses an automated mechanism to defend the naval fleet from aircraft and missile threats.

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