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Update 2-Lockheed wins $6.4 bln U.S. satellite project
Fri Sep 24, 2004 06:43 PM ET
(Adds Lockheed comments, paragraphs 4-5)
WASHINGTON, Sept 24 (Reuters) - Lockheed Martin Corp. (LMT.N: Quote, Profile, Research) has been chosen to lead a $6.4 billion Navy satellite project aimed at boosting U.S. forces' communications capabilities tenfold, the Pentagon said Friday.
Bethesda, Maryland-based Lockheed was picked over Raytheon Co. (RTN.N: Quote, Profile, Research) after a four-year competition to build the so-called Mobile User Objective System. Made up of four to eight geostationary satellites, it will serve ships, aircraft, submarines and ground forces.
The initial, seven-year contract could be worth as much as $3.27 billion if options for up to five satellites are exercised, extending it to 2015, the Pentagon said.
The base contract's minimum value was $2.1 billion to produce the first two satellites and associated ground control elements, Lockheed said.
Overall, the program is projected to cost $6.4 billion over its lifespan. The anticipated launch date for the first satellite is 2010, a year later than originally scheduled because of competing funding needs of the U.S.-declared war on terror.
Lockheed's chief partners on the job are General Dynamics Corp. (GD.N: Quote, Profile, Research) and Boeing Co. (BA.N: Quote, Profile, Research) .
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