Lockheed Martin Corporation


Lockheed Martin Awarded System Development and Demonstration Contract For the C-5 RERP

Lockheed Martin Aeronautics Company was awarded a $1.1 billion contract on December 5 by the US Air Force to begin the System Development and Demonstration (SDD) phase of the Air Force's C-5 Reliability Enhancement and Reengining Program (RERP).

The C-5 RERP, determined by the Air Force to be the most cost-effective way to meet its future heavy airlift needs, is the second phase of a comprehensive modernization plan for the C-5 airlifter fleet aimed at increasing fleet availability and reducing total cost of ownership.

The RERP focuses on upgrading the aircraft with modern commercial engines and systems and making minor structural enhancements to ensure the C-5 fleet is operationally viable until at least 2040.

"Now more than ever, the importance of the C-5 to our national security has come to light," said June Shrewsbury, LM Aero's vice president for strategic airlift. "We are proud to be able to support the Air Force in providing this critical capability in a very cost-effective way."

The SDD contract will last seven years and will result in development and demonstration of the reliability enhancements and new engines and pylons on four C-5 aircraft. The USAF will use the results of the SDD program to potentially award production modernization contracts for the entire C-5 fleet. That decision is planned to occur near the completion of the SDD contract.

In February 2000, LM Aero was awarded a pre-SDD study contract to initiate engine/pylon integration risk reduction activities and further define reliability enhancements for the RERP.

During this contract period the General Electric CF6-80C2 powerplant was selected. Procurement of the powerplant package will include the engine, nacelle and thrust reverser.

The General Electric proposal provides for the procurement of up to 504 powerplants plus spares with a potential value in excess of $2.6 billion. Goodrich was selected as the supplier of the new pylons systems. The Goodrich proposal provides for an estimated 504 pylon systems and is valued at approximately $300 million.

The first phase of the Air Force's C-5 modernization effort is the Avionics Modernization Program. The $454 million AMP contract was awarded to LM Aero in January 1999 and will integrate an advanced flight control and communications/navigation system, as well as new instrument displays. Lockheed Martin Aeronautics Company is a leader in the design, development, systems integration, production and support of advanced military aircraft and related technologies. Its customers include the military services of the United States and allied countries throughout the world. Products include the F-16, F-22, C-130, C-5, P-3, S-3, F-117, U-2, and Joint Strike Fighter, among other renowned aircraft.

LM Aeronautics is a unit of Lockheed Martin Corporation headquartered in Bethesda, Md., and is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced- technology systems, products and services. The corporation's core businesses are systems integration, space, aeronautics, and technology services.

For information on Lockheed Martin Corporation, visit: http://www.lockheedmartin.com/

For information on Lockheed Martin Aeronautics Company, visit: http://www.lmaeronautics.com/


SOURCE: Lockheed Martin Aeronautics Company

Contact: Jim Saye of Lockheed Martin Aeronautics Company,
+1-770-494-2406, or james.w.saye@lmco.com