WSJ: Lockheed Martin Wins Special Operations Logistics Contract

By August Cole

Of THE WALL STREET JOURNAL

Lockheed Martin Corp. (LMT) won a 10-year contract worth up to $5 billion to supply U.S. commandos with logistics support, unseating L-3 Communications Holdings Inc. (LLL), which had previously held the contract.

The win is the latest sign of how the biggest defense contractors are increasingly looking to military support work to augment their traditional aerospace engineering work. Special operations forces tend to use different equipment from conventional troops, and need items more quickly. Under the contract, Lockheed will be responsible for maintaining and repairing specialized equipment, having it ready at a moment's notice for deployment on special missions.

For L-3, the loss is a blow because the company had been doing the work for years and considered it among its prestigious lines of business. A Boeing Co. (BA) team was also in the running.

(This story and related background material will be available on The Wall Street Journal Web site, WSJ.com.)