The Federal Aviation Administration has awarded a contract to Lockheed Martin Air Traffic Management for wide-area augmentation system (WAAS) satellite leased communication services. As the FAA moves toward implementation of satellite navigation, these services will provide increased availability of WAAS for instrument approaches at U.S. airports.

This initial contract is worth $34 million, including a $12 million task order to start the work. The total contract value could amount to $597 million if additional satellite services are ordered. The Lockheed Martin [NYSE: LMT] team also includes Raytheon [NYSE: RTN]and Boeing [NYSE: BA]. The FAA currently leases communications transponders on two Inmarsat-III satellites, providing coverage across the country, including Alaska and Hawaii.