Lockheed Martin Awarded $100.5 Million Contract from U.S. Air Force

Aerospace and defense company Lockheed Martin (NYSE:LMT) will continue producing bomb guidance kits for the U.S. Air Force after agreeing to a $100.5 million contract.

The contract awarded to Lockheed Martin is part of a $475 million multiple-award contract, out of which the U.S. Air Force allotted $134 million for the advancement of the Paveway II Plus Laser Guided Bomb.

The deal will serve as a continuation of a $34 million contract awarded to Lockheed Martin in 2010. The company currently makes Paveway II Plus guidance kits for the U.S. Air Force and Navy.

The company anticipates making deliveries on the new contract with the U.S. Air Force in 2012.

The guidance kits bring precision-guiding technology to gravity weapons and can be utilized on the militarys aircraft platforms without modifications. Lockheed Martin is the sole provider of the Paveway II Enhanced Laser Guided Training Round and Dual Mode Laser Guided Bomb.

The company said its bomb kits make the guided weapon more accurate than previous versions, thereby reducing the risk to U.S. and allied forces. The guidance kits already have been deployed in overseas operations such as Operation Iraqi Freedom.