Lockheed Martin wins $350 million FAA contract Job involves overhaul of air traffic control


November 21, 1997|By BLOOMBERG NEWS

WASHINGTON -- Lockheed Martin Corp. won a $350 million contract to provide personnel support for the massive overhaul of the nation's air-traffic-control computer system, the Federal Aviation Administration said yesterday.

The FAA contract is for a four-year base period. It includes two two-year options which, if exercised, could boost its value by $1 billion.

Lockheed beat a team that included Raytheon Service Company, Vitro Corp. and four smaller companies.

Up to 1,000 Lockheed Martin workers will provide engineering, planning, automation, environmental analysis and other services to the FAA. If all of the options are exercised, the contract could include 22.5 million hours of technical services, making it one of the FAA's largest personnel support contracts.

"This contract is critical to making the FAA's 30,000-plus facilities more reliable and expanding the system's capacity to meet the growing demand for aviation services," FAA Administrator Jane Garvey said.

The FAA had been expected to award the contract in October. Lockheed Martin holds the current contract for air-traffic-control personnel support, which had been awarded to General Electric Aerospace in 1993. That company was acquired by Martin Marietta, which was later bought by Lockheed.

Bethesda-based Lockheed Martin had to give up some of its responsibilities under the current contract because of potential conflicts resulting from its 1996 acquisition of Loral Corp.

Lockheed shares rose 18.75 cents to $92.8125 in yesterday's trading. Raytheon shares rose 37.5 cents to $50.125. The FAA contract was announced after the close of U.S. trading.

The FAA is currently in the midst of an air-traffic-control modernization program begun over a decade ago. The winner of the personnel support contract will provide as many as a thousand technicians to oversee the integration of all components of the upgraded system, including hardware, software and radar equipment.

The team headed by Raytheon included four minority-owned small businesses: CSSI of Washington; Dimensions International of Alexandria, Va.; GEM Technology of Miami, Fla.; and Universal Systems and Technology of Fairfax, Va.

Pub Date: 11/21/97

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