Subject:::AEHF Satellite Deal between Lockheed and U.S. Air Force Likely Won't Go Through in 2012 - Satellite Spotlight Satellite Spotlight eNewsletter
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December 26, 2012

AEHF Satellite Deal between Lockheed and U.S. Air Force Likely Won't Go Through in 2012

By Rory Lidstone, TMCnet Contributing Writer

It seems as though an outstanding multibillion dollar agreement between the U.S. Air Force and Lockheed Martin (News - Alert) Corp. is unlikely to close before year's end, according to top Air Force acquisition official Lieutenant General Charles Davis. The deal to purchase new military communications satellites is stuck in the negotiations phase.

Put simply by Davis, there is still "a little bit of work to go in negotiations," which will more than likely put off finalizing the deal until 2013. The goal is to establish a fair deal for both parties in the purchase of the Advanced Extremely High Frequency (AEHF) satellites, said Davis.

Air Force officials had apparently hoped to sign a fixed-price, incentive-free contract with Lockheead for its fifth and sixth AEHF satellites, for a savings of over 10 percent compared to earlier contracts, way back in the summer. But well into the winter, the two sides have been unable to reach a satisfactory agreement on the terms of the $2.6 billion contract... Read More

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