UPDATE 1-Lockheed wins weather satellite deal up to $1.1 bln
(Adds details on which companies lost bidding, comment from Lockheed and NOAA, defense analyst)
WASHINGTON, Dec 2 (Reuters) - Lockheed Martin Corp (LMT.N) on Tuesday beat out Boeing Co (BA.N) and Northrop Grumman Corp (NOC.N) to win a contract valued at up to $1.1 billion to build next-generation weather satellites for the U.S. government.
Under the contract, awarded by NASA and the National Oceanic and Atmospheric Administration (NOAA), Lockheed will build two Geostationary Operational Environmental Satellite R-Series, known as GOES-R, and includes options for two additional spacecraft, the company said in a statement.
It is the latest in a series of satellite contract wins -- including a massive follow-on order for Global Positioning Satellites -- for the Bethesda, Maryland-based company, which is also the Pentagon's largest supplier.
Data from the GOES system provides accurate real-time weather forecast and early warning products to the public and private sectors.
The new GOES-R satellites will offer better and faster forecasting data, which Lockheed said could generate significant benefits in the areas of climate monitoring, ecosystems management, commerce and transportation.
"GOES-R will expand capabilities for weather forecasting that will help to better protect lives and property," said Joanne Maguire, executive vice president of Lockheed Martin Space Systems Company.
The first GOES-R satellite is due to be launched in 2015.
Mary Kicza, assistant administrator for NOAA Satellite and Information Service, said the new satellites would provide about 50 times more weather and climate data than is available from current satellites.
"The American public will see real life-saving benefits from this satellite system with more timely forecasts and warnings for severe weather," Kicza said.
NOAA funds, operates and manages the GOES program. NASA manages the acquisition of GOES-R spacecraft and instruments for NOAA.
Defense analyst Loren Thompson said the contract was great news for Lockheed, but should worry top officials at Boeing.
"Lockheed has had so many successes recently, this latest victory suggests that they are now the leading developer of spacecraft in the world," he said,
"The fact that Boeing has lost so many competitions to Lockheed raises questions about the fate of Boeing's space business," he said, noting that Boeing had also received fewer commercial satellite orders in recent years.
Northrop was also vying for the lucrative weather satellite deal, but its poor performance on a separate environmental satellite had dimmed its chances, Thompson said.
Boeing needed to reevaluate its financial investment in the space sector, but probably could not exit the business completely since it had several long-term classified contracts with the U.S. government. (Editing by Bernard Orr)
