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Lockheed Gets $491.2M for AEHF Satellite 3 and Launch Support

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AEHF Satellite
AEHF Milstar III
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Lockheed Martin Corp. Space Systems Co. in Sunnyvale, CA received a $491.2 million cost-plus-award-fee, cost-plus-fixed-fee, firm-fixed-price contract modification. This is a modification of the Advanced Extremely High Frequency (AEHF) satellite contract to add satellite vehicle #3 (SV3) as envisioned and permitted by a clause in the contract. This action includes the procurement of SV3, and introduces the option for Launch and Operations support.

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Advanced Extremely High Frequency (AEHF) Milstar III satellites will support twice as many tactical networks, while providing 10-12 times the capacity and 6 times higher data rate transfer than that of the current Milstar II satellites. They will form the secure backbone of the Pentagon’s intermediate term Military Satellite Communications (MILSATCOM) architecture.

Like a number of current US satellite development programs, the AEHF program has been cited for cost overruns and schedule slips, in part as a result of failures by the US National Security Agency to furnish key cryptography requirements and specifications in the most timely manner.

The Launch and Operations Support option associated with this modification is planned to be exercised beginning in FY 2009 to support an FY 2010 launch, and the acquisition of SV3 will complete the AEHF program of record unless the T-SAT program is deferred or canceled (in which case AEHF SV4 & SV5 will be launched).

Work on this contract, which takes the total amount of AEHF expenditures announced on DefenseLINK to $4.276 billion, is expected to be completed in May 2011. The Headquarters Space and Missile Systems Center in Los Angeles, CA issued the contract (F04701-02-C-0002, P00156).

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