Lockheed Martin [LMT] received an Undefinitized Contract Action (UCA) from the U.S. government valued at $304 million for the purchase of four C-130J Super Hercules airlifters, plus initial spares and training, for Norway, the company reported yesterday.
The UCA initially funds 50 percent of the program and will allow Lockheed Martin to begin long-lead acquisition of production materials. A fully definitized contract for the Norwegian aircraft is expected to be signed early next year, according to Lockheed Martin.
The Norwegian Super Hercules will be the longer fuselage, or “stretched” variant, of the C-130J similar to those being delivered to the U.S. Air Force. Deliveries to Norway will include one aircraft in 2008, one in 2009 and two in 2010, the company said.
The first two aircraft for Norway are already in production and were originally destined for service with the U.S. Air Force. As a result of Norway’s urgent need to replace its nearly 40-year-old C-130s, the Norwegian government arranged with the U.S. government for early delivery. The second two aircraft will be built specifically for Norway, Lockheed Martin said.
Lockheed Martin and Norway signed a separate agreement in August for an industrial cooperation program that fully meets Norwegian requirements for the C-130J procurement, the company added.