Lockheed Martin captures FAA contract

Lockheed Martin Corp. won a five-year, $1.9 billion contract from the Federal Aviation Administration to operate the agency's automated flight service station network in the lower 48 states, Hawaii and Puerto Rico, the company said yesterday.

The automated flight service station network gives private and non-airline commercial pilots access to flight planning services, weather briefings, in-flight radio communications, national airspace information, search-and-rescue support and lost aircraft orientation.

The company won the contract following an A-76 competition in which government employees compete against the private sector to see who should perform the work. Government employees have won the majority of these competitions.

Under the contract, which also has five option years, Lockheed Martin will install new technology and upgrade facilities. As a result, the FAA will reduce the number of automated flight service stations to 20 from 58 during the next two years.

Lockheed Martin will offer FAA workers who move with the new contract employment at their current salaries and comparable benefits as well as training and promotion opportunities. FAA has about 2,500 employees at the flight services stations.

The agency estimates that the program will save $2.2 billion over the next 10 years.

The Bethesda, Md., defense contractor will begin a phase-in period in March.

Lockheed Martin's teammates include the Washington Consulting Group Inc., Parsons Corp., ITT Industries Inc., VT Group plc, Crown Consulting Inc., Mori Associates Inc., PricewaterhouseCoopers LLP, Chugach Alaska Corp., Object CTalk Inc., Redflex Communications Systems Inc. and Aspect Communications Corp.

Lockheed Martin employs about 130,000 people and had 2004 revenue of more than $35.5 billion. It is No. 1 on Washington Technology's 2004 Top 100 list of prime federal contractors.