Lockheed wins $2.9 billion contract for US missile warning satellites

Mike Hamel, vice president and general manager of Commercial Space at Lockheed Martin, left, Colorado Gov. John Hickenlooper, center, and Rick Ambrose, executive vice president of Lockheed Martin Space Systems Company, celebrated a growing aerospace presence in Colorado as they tour the new Lockheed Martin Commercial Space Headquarters.
RJ Sangosti | The Denver Post | Getty Images

Lockheed Martin has been awarded a U.S. Air Force contract worth up to $2.9 billion for three missile warning satellites, the Air Force said on Tuesday.

Lockheed's Next-Generation Overhead Persistent Infrared Satellites will provide improved missile warning capabilities that are more survivable against emerging threats than the current system, the Air Force said.

"As we develop these new systems, speed matters," Air Force Secretary Heather Wilson told the Air Force's internal news service. "We are focused on providing a missile warning capability survivable in a contested environment by the mid-2020s."

Last year, North Korea conducted a dozen missile tests, including the launch of a suspected intercontinental ballistic missile (ICBM) that could hit the U.S. mainland, and tested a purported hydrogen bomb.

The Air Force said the "undefinitized contract" allows the government to meet urgent needs by authorizing Lockheed Martin to begin work before reaching a final settlement on contract terms.

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Key Points
  • President Donald Trump signed the 2019 National Defense Authorization Act which authorizes a top-line budget of $717 billion.
  • "The National Defense Authorization Act is the most significant investment in our military and our war fighters in modern history," Trump said Monday. "We are going to strengthen our military like never ever before and that's what we did."
  • Here's a roundup of some big-ticket items the Pentagon is approved to buy.