STEPHEN TRIMBLE / WASHINGTON DC
Lockheed Martin has gained the upper hand in the laser-guided bomb market, capturing 100% of a $109 million deal to replace Paveway II-class weapons used during Operation Iraqi Freedom (OIF).
With the bulk of a $2 billion spending plan yet to be awarded, the decision, announced on 24 November, may force Raytheon to adjust its pricing strategy. Lockheed Martin says the ground rules of the competition assumed an equivalent technical capability between the competitors, leaving price as the determining factor.
The company entered the laser-guided bomb market a year ago, obtaining US Air Force certification for munitions after years of supplying it with laser-guided target rounds. In February, the USAF split a $281 million order for Paveway II kits between Raytheon (62%) and Lockheed Martin (38%). It plans to award six more one-year contracts worth up to $2 billion, with another round of bidding in late January.
The latest deals will provide for replenishment of munitions inventories depleted by OIF operations. The contract includes a $56 million USAF order for 225kg (500lb) GBU-12 laser guided bomb kits, and a $53 million order by the navy for both GBU-12 and 450kg GBU-16 kits. A preliminary air force analysis revealed that US forces dropped 7,114 GBU-12s and 1,233 GBU-16s during the conflict.
Source: Flight International
