Bethesda, Md. (AP) — Lockheed Martin Corp. said Tuesday that it received a $100.5 million contract from the U.S. Air Force for production of a new laser guided bomb guidance system, the paveway II Plus Laser Guided Bomb GBU-12.
The award is most of an initial $134 million contract for the bomb system procurement. It's part of an overall $475 million 5-year multiple-award contract announced by the U.S. Air Force on Aug. 1.
Deliveries on the contract will begin in 2012.
The GBU-12 new guidance equipment consists of integrated computer controls and an air foil system, which provides lift and stability to the weapons.
Lockheed Martin said the new equipment improves weapon accuracy and reduce risk to U.S. and allied ground forces when compared to older paveway II weapons.
Lockheed Martin is currently producing the new systems for the Air Force and the Navy as part of a $34 million U.S. Air Force contract awarded in 2010.
Lockheed Martin shares fell 15 cents to close at $71.22. They've traded between $66.36 and $82.43 in the past 52 weeks.