Aegis Competition: An End to Sole Suppliers?
The Navy is opening bidding on a $500 million contract
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For almost 40 years, U.S. Navy ships patrolling war zones have relied on the Aegis Combat System, computers and radars that work together to detect threats and guide missiles to their targets. In March 2003, Aegis-equipped cruisers in the Persian Gulf took part in the “shock and awe” campaign to remove Saddam Hussein.
As the sole supplier of Aegis, Lockheed Martin has reaped huge rewards. Daniel Goure, former director of the Office of Strategic Competitiveness at the Pentagon, estimates it has been worth at least $30 billion to the company and its predecessors, including international sales. Lockheed gained control of the system—adopted by navies in Australia, Japan and South Korea—when it merged with Martin Marietta in 1995.