Lockheed Martin Receives Contract for C-5M Super Galaxy Program

Released on Thursday, February 26, 2009

MARIETTA, Ga., February 26th, 2009 -- Lockheed Martin [NYSE: LMT] recently received two contracts totaling $324 million for the C-5M Super Galaxy program. The first contract is for the Reliability Enhancement and Re-Engining Program (RERP). The second contract, Interim Contractor Support (ICS), supports the Super Galaxy during familiarization and Operational Test and Evaluation (OT&E).

"These awards help us deliver the improved capability of the C-5M Super Galaxy to the Warfighter," said Lorraine Martin, Lockheed Martin C-5 program vice president. "These funds are for the production of more C-5Ms and also help us partner with the U.S. Air Force while they become familiar with their new airplane."

A $299 million contract award funds the RERP production for nine aircraft including installation on one aircraft, material and fabrication of three aircraft, and long-lead funding for five aircraft. Production is slated to begin this year when the first aircraft is inducted into the production program in August. Two C-5Ms have already been delivered to the Air Force, and current Air Force plans call for Lockheed Martin to deliver 52 fully modernized C-5Ms by 2016.

The ICS contract, valued at $25 million, will support the C-5Ms delivered to the Air Force during the initial familiarization period and continue through OT&E. The funds will be used for logistics support including supply, engineering, contractor maintenance experts and aircrew support.

The C-5M is the product of a two-phase modernization effort. The first, the ongoing Avionics Modernization Program (AMP), provides a state-of-the-art glass cockpit with modern avionics and flight instruments. The RERP is the second phase of the C-5 modernization effort. It includes 70 enhancements or replacements of major components and subsystems, including the installation of GE CF6-80C2 commercial engines. Modernization of the C-5 pays for itself through savings in operation and sustainment costs.

The C-5 has been the backbone of strategic airlift in every engagement since it entered service. It is the only aircraft capable of carrying 100 percent of certified air-transportable cargo, with a dedicated passenger compartment enabling commanders to have troops and their equipment arrive in an area of operation simultaneously. The C-5 can carry twice the cargo of other strategic airlift systems. With more than 70 percent of its structural service life remaining, the C-5M Super Galaxy will be a force multiplier through 2040.