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Lockheed Martin Aeronautics Company Awarded Contract For C-5 RERP Preliminary Engineering Studies

MARIETTA, GA, July 11th, 2001 -- Lockheed Martin Aeronautics Company has received a $21 million contract conduct design risk reduction studies to define the most cost-effective solutions set of reliability enhancements for the Air Force's C-5 Reliability Enhancement and Reengining Program (RERP). "This contract is an important step for the C-5 RERP," says Joe Dupcak, C-5 RERP Program Manager. "We will lay out all the cornerstone requirements and prepare for the next big step into System Development and Demonstration (SDD). We're excited about our close partnership with the Air Force to bring these much needed improvements to the C-5 fleet."

The C-5 RERP is the second phase of the Air Force's comprehensive modernization plan for the C-5 fleet aimed at increasing fleet availability and reducing total cost of ownership. The program will focus on upgrading the aircraft with modern commercial engines and systems and making minor structural enhancements to ensure the aircraft is operationally viable until at least 2040.

The Air Force anticipates an RERP SDD contract award in December 2001. SDD will last five years and will result in flight qualification of four C-5 aircraft. The Air Force estimates the SDD contract value at $800 million. Upon successful completion of SDD, the program will move into the production phase beginning first with retrofit of the C-5Bs. Total program cost is estimated by the Air Force to be approximately $6 billion.

To date, as part of the RERP effort, LM Aero-Marietta has competed and selected the engines, engine pylons, Auxiliary Power Unit (APU), and various components necessary to upgrade the C-5 Galaxy. The selected engines - the CF6-80-C2 -- will be supplied by General Electric, the pylons will be manufactured by Goodrich Aerospace, and the APU supplied by Hamilton Sundstrand.

Lockheed Martin is confident of restoring the C-5 mission capable rate to a level well above the Air Mobility Command requirements of at least 75 percent. "From studies we have conducted in the past, we believe it's possible to reduce the cost of operation more than 30 percent and improve aircraft availability the equivalent of more than 20 aircraft. We've even offered the Air Force a guarantee for the improved mission capable rate," says Bill Arndt, Strategic Airlift Vice President. "Considering that the C-5 has 80 per cent of its structural life remaining, modernization makes sense to ensure the aircraft can effectively operate at least to the middle of the 21st century. The taxpayers are getting a great payback on their investment."

The first phase of the Air Force's C-5 modernization effort was the Avionics Modernization Program. The $454 million AMP contract was awarded to LM Aero-Marietta back in January 1999 and will integrate an advanced flight control and communications/navigation system, as well as new instrument displays.

A leader in developing and producing the world's finest aircraft, Lockheed Martin Aeronautics Company serves customers including the U. S. and international governments, and commercial organizations. LM Aero-Marietta employs approximately 8000 at facilities in Georgia, Mississippi, and West Virginia and is a unit of Lockheed Martin Corporation.

Greg Caires Phone: 770-494-1671, Email: greg.a.caires@lmco.com