Lockheed Is Awarded Military Contract

A team headed by Lockheed Martin Corp. won a Navy contract worth as much as $3.3 billion to develop and build a satellite-based mobile communications system.

The seven-year contract for the Mobile User Objective System starts with an initial $2.1-billion award. The system, which will carry voice, video and data communications, will replace the Ultra High Frequency Follow-On satellite network built by Boeing Co. and launched in 1993. It is nearing the end of its designed life.

Bethesda, Md.-based Lockheed was competing against Raytheon Co. for the contract.

Lockheed shares rose $1.18 to $54.36 on the New York Stock Exchange. The contract was announced after the close of trading.