ULS Wins $1.1B Contract - Analyst Blog
June 27 2013 - 12:00PM
Zacks
United Launch Services, LLC or ULS,
jointly owned by The Boeing Company (BA) and
Lockheed Martin Corporation (LMT), has won a
contract, worth approximately $1.1 billion or $1,088 million, from
the U.S. Department of Defense (DoD). Per the agreement, the
company will provide launch vehicle configurations support to the
U.S. Air Force (AF) and the National Reconnaissance Organization
(NRO) under the Evolved Expendable Launch Vehicle (EELV) production
services.
ULS will configure several launch vehicles, including AF Atlas V
401, AF Atlas V 501, AF Delta IV 4,2, AF Delta IV 5,4, NRO
Atlas 401, NRO Atlas 541, and a NRO Delta IV 5,2. This activity
will take place in Centennial, Colo. and is scheduled to be
completed by 2015.
ULS is a subsidiary of United Launch Alliance, LLC, a 50-50 joint
venture between Boeing and Lockheed Martin. United Launch Alliance
offers U.S. affordable, consistent, and assured access to space for
U.S. government missions. It has three launch vehicles – Atlas V,
Delta IV and Delta II.
EELV program, a U.S. AF’s space lift modernization program, was
incorporated in 1994 to make space launch vehicles more
cost-effective and reliable. The program is replacing the existing
fleets with two families of launch vehicles - the Boeing Delta IV
and Lockheed Martin Atlas V. With the utilization of this effort,
the cost of launch of the Atlas, Delta and Titan space launch
systems is expected to be reduced by 25%.
ULS has a long-standing business association with the U.S. defense
establishments and tries to meet its commitments in terms of
maintaining products and services standard along with delivery
timing. In Apr 2013, ULS received a contract, worth $16.9 million,
from the DoD to provide EELV launch capability services. Steady
flow of contracts will enable the company to improve its
forthcoming results.
Currently, Boeing and Lockheed Martin have a Zacks Rank #2 (Buy)
and a Zacks Rank #3 (Hold), respectively. Other stocks from the
sector that are presently performing well include Alliant
Techsystems Inc. (ATK) and Exelis, Inc.
(XLS) with a Zacks Rank #2 (Buy).
ALLIANT TECHSYS (ATK): Free Stock Analysis Report
BOEING CO (BA): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
EXELIS INC (XLS): Free Stock Analysis Report
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