Dallas, Texas 07/13/2015 (Financialstrend) – Lockheed Martin Corporation (NYSE:LMT) joins 20 other finalists in pursuit of $1.1 billion worth of contract for armored vehicles machines and systems operated by the Tank-Automotive and Armaments Command. The US Army has selected the company as an eligible partner for the contract. The eligibility is for a five-year contract for indefinite delivery/indefinite quantity.
Task orders for the most suited party will be released soon, following a government-sponsored kickoff meeting that took place last month. Part of the contract involves maintenance, repair and overhaul, equipment installation and modification of armored vehicles machines and systems.
Lockheed Martin Corporation (NYSE:LMT)’s vice president has reiterated commitment to continue servicing the US Army with the deployment of experience and expertise for actionable solutions.
Lockheed Martin Corporation (NYSE:LMT) plans to sell as many as 5,100 F-35 fighter jets over the next 60 years with the US poised to be the biggest customer. Pentagon is reportedly planning to buy 500 stealth fighter jets most of which Lockheed Martin would be more than willing to service.
There has been talk that the company is considering offering the US government discounts of as much as 10% on the fighter jets as it looks to ink a potential deal. To offer such a high discount the company will have to squeeze its own suppliers on the parts used to make the planes.
A deal with Pentagon should be good for business as Lockheed Martin Corporation (NYSE:LMT) could generate billions of dollars in revenues over the next three years. The stock sentiments in the Street should improve, the company having generated $45.1 million in sales last year.
However, a greater dependence on a single contract could harm the stock’s sentiments should things not pan out as expected. Lockheed Martin Corporation (NYSE:LMT) should focus on growing its revenue streams, to dictate its long-term destiny.