The U.S. Navy today awarded Lockheed Martin $85 million for long-lead material items and critical work center efforts to support the production of three Aegis Weapon Systems for Australia's Air Warfare Destroyer (AWD) program. The contract immediately authorizes $64.5 million for this effort.

This contract arrangement allows the Australian program to take advantage of production efficiencies by combining the long-lead items with other ongoing Aegis Weapon System work already under contract.

"This long-lead material contract provides significant cost savings for the Royal Australian Navy," said Paul Johnson, managing director of Lockheed Martin Australia. "We are fully committed to supporting the AWD program by delivering outstanding systems that meet the Navy's schedule and cost goals."

The three Aegis Weapon Systems for the AWD program will be the next generation of Aegis, which will include 100 percent commercial off-the-shelf hardware and a fully open architecture computing system.

"Aegis Open Architecture will provide multiple advantages, including the opportunity to more easily integrate Australian systems into the AWD combat system and reducing acquisition and certification risks and costs," said Orlando Carvalho, vice president and general manager of Lockheed Martin's Surface/Sea-Based Missile Defense Systems business in Moorestown. "Aegis Open Architecture is already driving commonality across the United States' surface fleet, as it is being directly leveraged and reused in combat system development associated with the Littoral Combat Ship, DDG-1000 and the Coast Guard's Deepwater programs."

"This is an exciting sale," said Rep. Jim Saxton, a senior member of the Armed Services Committee whose Third Congressional District includes the Moorestown plant. "Australia is a strong and reliable ally and their decision to join Japan, South Korea, Norway and Spain in buying Aegis equipment is most welcome. It's good for international security. It's also good for the workforce at the plant which has labored tirelessly in developing a product that is the best in the world at tracking and engaging enemy missiles. Aegis is second to none."

The Aegis Weapon System is the world's premier naval surface defense system and is the foundation for Aegis Ballistic Missile Defense, the primary component of the sea-based element of the U.S. Ballistic Missile Defense System. The Aegis Weapon System includes the SPY-1 radar, the Navy's most advanced computer-controlled radar system. When paired with the MK-41 Vertical Launching System, it is capable of delivering missiles for every mission and threat environment in naval warfare.

The Aegis Weapon System is currently deployed on 80 ships around the globe, with more than 25 additional ships planned. In addition to the U.S. Navy and Australia, Aegis is the maritime weapon system of choice for Japan, South Korea, Norway and Spain.

Headquartered in Bethesda, MD, Lockheed Martin employs about 135,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

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SOURCE: Lockheed Martin