(Adds Lockheed, Air Force statements)
WASHINGTON, June 24 The U.S. Air Force said on
Tuesday it had awarded Lockheed Martin Corp a
fixed-price contract valued at $1.9 billion to complete work on
two missile-warning satellites as part of the Space-Based
Infrared System (SBIRS).
The contract, announced in the Pentagon's daily digest of
major contract awards, runs through Sept. 30, 2022.
It funds completion of the fifth and sixth satellites in the
SBIRS system, and includes performance incentives and options
for acoustic testing, launch operations an early on-orbit
testing, the Pentagon said.
U.S. Air Force Space Command's Space and Missile Systems
Center said the contract award saved over $1 billion as a result
of a block-buy contracting approach and production and
"We eliminated unnecessary layers of program oversight and
contract reporting, restructured our test program and
streamlined the production schedules," Colonel Mike Guetlein,
production program manager, said in a statement.
The contract comes on top of advanced procurement funding
awarded to Lockheed in 2012 and 2013 to start buying parts that
take a long time to order. It will also fund completion of the
associated ground operations and processing updates.
SBIRS is a new U.S. strategic missile warning system that
replaced the 1970s Defense Support Program satellites. It
provides continuous early warning of ballistic missile launches
and other infrared surveillance to U.S. leaders.
It includes a mix of satellites in geostationary (GEO)
orbit, sensors on other satellites in highly elliptical orbit,
and ground hardware and software. The first two GEO satellites
started operations in 2013. The third GEO satellite is in
testing and the fourth is in final assembly, Lockheed said.
(Reporting by Andrea Shalal; Editing by Andre Grenon and