The U.S. Department of Defense announced three major contracts for Central Florida businesses on Nov. 3, 4 and 5.
The DoD on Nov. 3 added another $176.2 million to a previous contract awarded to Lockheed Martin Missiles & Fire Control in May. This brings the total value of the contract, which went to Lockheed’s site on Sand Lake Road in Orlando, to $621.4 million.
Why do U.S. Department of Defense contracts matter to Central Florida?
The Department of Defense has contracted with businesses throughout the region for programs related to national security and war. At times, when larger companies like Lockheed Martin Corp. (NYSE: LMT) win awards for this kind of work, they subcontract or even buy technology from smaller tech companies in Central Florida, nurturing the manufacturing and technology ecosystems.
Lockheed already has been manufacturing long-range anti-ship missiles under the contract, and the additional funds are for another 61, all for U.S. use and not for sale to foreign countries. In addition to the missiles, the contract includes spares and dummy training missiles plus manufacturing and testing equipment.
The plan is to finish the work by July 18, 2027, paid for by $78.3 million from U.S. Air Force missile procurement funds and $97.9 million from Navy weapons procurement funds. Essentially, the missiles are shot at enemy ships from an ever-expanding set of makes and models of warplanes.
The next day, Northrop Grumman Systems Corp. (NYSE: NOC) in Melbourne won a $31.8 million contract modification to extend software support activity for the production of the E-2D Advanced Hawkeye. The Navy is covering the cost of the contract, pulling from its aircraft procurement funds. The work should be complete by March 2024, and most of that work will be done in Melbourne.
The original Hawkeye was developed by Northrop in the 1950s and has been in production since the 1960s. It was designed to operate from aircraft carriers. Compared to the previous version, it has a new radar, radio suite, mission computer, integrated satellite communications, flight management system and improved engines. Other updates are a glass cockpit and aerial refueling capabilities.
On Nov. 5, Osceola County won an advanced manufacturing contract for a maximum of $289.1 million. The work will be done in Kissimmee and completed by Oct. 27, 2028. The Army’s first round of funding on this contract is for $3.7 million.
Neocity — a Kissimmee-based, Bridg-represented hub for chip production — has established itself as the center of advanced manufacturing in the county. Vice President of Marketing and Communications Gloria LeQuang of Bridg did not respond to an inquiry regarding the specific location of manufacture. Public Relations Manager Mark Pino of Osceola County responded to a similar inquiry: "We are unavailable for an interview and unable to provide any additional information at this time."
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