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MARIETTA, Ga, December 13th, 2005 -- Lockheed Martin [NYSE: LMT] was recently awarded its second S-3 Prime Vendor Support (PVS) program contract by the U.S. Navy. The contract is valued at $21.7 million with a ceiling of $28.5 million which includes four years of fleet engineering support and two years of depot maintenance and material support. If all options are exercised, this latest contract will coincide with the decommissioning of the last U.S. Navy S-3 Viking squadron in 2009.

Under the PVS concept, Lockheed Martin, along with Naval Air Systems Command (NAVAIR), Defense Logistics Agency (DLA), and Naval Aviation Inventory Control Point (NAVICP) work in concert to provide engineering, logistics and material services in support of S-3B Viking aircraft fleet operations.

“We are honored to continue the PVS contract with the U.S. Navy for support of the S-3 fleet," said Rick Kirkland, vice president, Lockheed Martin Maritime Surveillance Enterprise. "The PVS Program has transformed the S-3B Viking aircraft from one of the most expensive fixed wing, carrier-based aircraft platforms to operate to one of the least expensive. The combined efforts of the government, Lockheed Martin and our subcontractors have produced effective, efficient and timely technical and cost solutions to aircraft operational and support issues.”

Through the S-3 PVS program, turnaround time for scheduled aircraft maintenance has been reduced by 25 percent; the overall material condition and availability of deployed aircraft improved; and the depth and range of technical support provided to aircraft maintainers and operators has also improved markedly. Other successes include a 50 percent reduction in depot level scheduled maintenance costs and a 27 percent increase in aircraft availability to the warfighter.

The PVS Program consists of three elements: the Integrated Maintenance Program (IMP) in which scheduled depot level maintenance is conducted by a joint government and contractor team at NAS Jacksonville, Fla.; the Fleet Support Team that provides a full range of engineering, logistics support and technical publications to fleet operators; and the Material Oversight Team that provides kits for the IMP effort and overall solutions to aircraft material readiness issues. The first PVS contract was awarded to Lockheed Martin in March 2001. Major Lockheed Martin subcontractors on the PVS program include: Logistics Support International (LSI) based in Jacksonville, Fla.; American Valley Aviation (AVA) based in Quincy, Calif.; Applied Technical Services (ATS) of Marietta, Ga.; and Lockheed Martin Aircraft and Logistics Centers (LMALC) in Greenville, S.C.

Craig Quigley, 703-367-4350; e-mail
Peter Simmons, 770-494-6208; e-mail,

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