The Contract

The US Department of Defense Press Desk released today that Lockheed Martin [NYSE: LMT] has been awarded a contract modification to the sum of $547,934,477 for the production of 7,358 AGM-114 Hellfire II Tactical Missiles.

 

Source Excerpt

Department of the Army Contract:

“Lockheed Martin Missiles and Fire Control, Orlando, Florida, was awarded a $547,934,477 modification (P00050) to contract W31P4Q-15-C-0151 for a Hellfire II missile production requirement that consists of 7,358 Hellfire II tactical missiles in containers, in various air-to ground missiles models. Work will be performed in Orlando, Florida, with an estimated completion date of Sept. 30, 2020.  Fiscal 2010, 2015, 2016, and 2017 other procurement (Army) funds in the amount of $547,934,477 were obligated at the time of the award. U.S. Army Contracting Command Redstone Arsenal, Alabama, is the contracting activity.”

Source

 

Contract Interpretation

  • Modification: This contract modification (P00050) was created to build 7,358 additional AGM-114 Hellfire II Tactical Missiles than the original contract had entailed.

 

AGM-114 Hellfire II

The AGM-114 Hellfire II missile is a semi-active laser-guided (SAL) weapon, capable of precise targeting with minimal collateral damage. Unlike the fire-and-forget Longbow Hellfire, the Hellfire II homes in on a particular target painted by a laser. This laser can be projected by the launching aircraft, other aircraft, or by ground observers. It has the capability to be launched autonomously or with remote designation and adapts to all launch platforms- be it in the air, on land or at sea.

Above: Hellfire operations during Rim of the Pacific 2016. Royal Australian Navy Video by Leading Seaman Tom Gibson (July 23, 2016)

Lockheed Missiles and Fire Control are responsible for the production of these missiles. The Hellfire II is used as the main armament of the US Army’s AH-64 Apache Helicopter.


Disclaimer

As of this moment, I do not own shares of Lockheed Martin Corporation. My opinions are entirely my own and may or may not reflect the opinions of my peers on TickHounds. I am not being compensated for sharing my due diligence in any way other than what tips may be accrued.

Most information for this post was retrieved from various sources listed throughout the post. For other sources, see below:

Hellfire II
Longbow Hellfire
Original Image Source
Original Video Source