Lockheed Poised for $2.6 Billion U.S. Satellite Contract

Lockheed Martin Corp. (LMT) is expected to receive a military satellite contract from the U.S. Air Force by Dec. 31 that may be valued at almost $2.6 billion, according to the service and the company.

The contract would cover the purchase of two space vehicles, the final installment in a six-satellite constellation of the Advanced Extremely High Frequency communications program.

The contract would be a fixed-price incentive type, requiring Lockheed Martin, the world’s largest defense contractor, to share the cost of overruns or material failures. Contracts for the previous four satellites were cost-plus types that required the Air Force to foot the entire bill.