Lockheed Wins $3.44-Billion NASA Contract

Lockheed Martin Corp., the second-biggest defense and aerospace company, won a $3.44-billion, 10-year contract to run NASA’s space operations, beating rival Boeing Co. The initial contract is valued at $1.9 billion over five years, with options for another five years totaling $1.54 billion. The contract runs from October 1998 to December 2008. Lockheed will manage NASA’s data collection, measurement and communications operations supporting its earth-orbiting satellites, planetary exploration and human space flight. AlliedSignal Inc. said it was awarded a $1-billion contract as a member of the Lockheed Martin team. Lockheed, based in Bethesda, Md., is one of NASA’s largest contractors, working with Boeing to maintain the shuttle fleet. Lockheed shares rose $3.56 to close at $102.06, and Boeing shares rose 19 cents to $34.69 on the New York Stock Exchange.