The Navy had sought to inject competition into the Aegis program by opening the contract, valued by analysts at several hundred million dollars over time, to competition for the first time in 40 years.
Lockheed’s top executive for the Aegis program told reporters the company was “thrilled with the news that we get to continue on in this role,” calling it a “franchise program” for the Pentagon’s biggest supplier.
Jim Sheridan, director of Aegis programs for Lockheed, said the company won the contract by showing the Navy that it would “continue to push the envelope with respect to capability, but doing so affordably in a fiscally responsibly manner.”
Navy Rear Admiral Joe Horn, program executive officer for integrated weapons systems, said the contract underscored the Navy’s commitment to competition.
“By openly competing the Aegis ... contract, the Navy will benefit from improved systems at a lower cost, which is absolutely critical in light of our budget challenges,” Horn said in a statement.
Sheridan said the contract would be allowed to proceed, despite a U.S. congressional budget resolution that bans new programs, because it continued ongoing efforts on the Aegis program and did not constitute a new program.