Lockheed Martin Receives $324 Million For C-5M Super Galaxy Program

MARIETTA, Ga., 02/26/2009 --

Lockheed Martin [NYSE: LMT] recently received two contracts totaling $324 million for the C-5M Super Galaxy program. The first contract is for the Reliability Enhancement and Re-Engining Program (RERP). The second contract, Interim Contractor Support (ICS), supports the Super Galaxy during familiarization and Operational Test and Evaluation (OT&E).

"These awards help us deliver the improved capability of the C-5M Super Galaxy to the Warfighter," said Lorraine Martin, Lockheed Martin C-5 program vice president. "These funds are for the production of more C-5Ms and also help us partner with the U.S. Air Force while they become familiar with their new airplane."

A $299 million contract award funds the RERP production for nine aircraft including installation on one aircraft, material and fabrication of three aircraft, and long-lead funding for five aircraft. Production is slated to begin this year when the first aircraft is inducted into the production program in August. Two C-5Ms have already been delivered to the Air Force, and current Air Force plans call for Lockheed Martin to deliver 52 fully modernized C-5Ms by 2016.

The ICS contract, valued at $25 million, will support the C-5Ms delivered to the Air Force during the initial familiarization period and continue through OT&E. The funds will be used for logistics support including supply, engineering, contractor maintenance experts and aircrew support.

The C-5M is the product of a two-phase modernization effort. The first, the ongoing Avionics Modernization Program (AMP), provides a state-of-the-art glass cockpit with modern avionics and flight instruments. The RERP is the second phase of the C-5 modernization effort. It includes 70 enhancements or replacements of major components and subsystems, including the installation of GE CF6-80C2 commercial engines. Modernization of the C-5 pays for itself through savings in operation and sustainment costs.

The C-5 has been the backbone of strategic airlift in every engagement since it entered service. It is the only aircraft capable of carrying 100 percent of certified air-transportable cargo, with a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneously. The C-5 can carry twice the cargo of other strategic airlift systems. With more than 70 percent of its structural service life remaining, the C-5M Super Galaxy will be a force multiplier through 2040.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 146,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2008 sales of $42.7 billion.