L-3 Shortlisted to Compete for U.S. Air Force TSA III Contract

L3 Communications Holdings Inc.'s LLL Link Simulation & Training ("L-3 Link") business has been shortlisted to compete for the U.S. Air Force ("USAF") Training Systems Acquisition ("TSA") III contract, which has a cumulative potential value of $20.9 billion.

Apart from L-3 Communications, 11 large company contractors were selected to compete for future TSA III task orders over the next 10 years.

If L-3 wins the contract, the company will be entitled to analyze, design, develop, produce, install, integrate, test and provide sustainment support for USAF training configurations including complex aircrew, maintenance and system-specific training systems.

The TSA III task orders will provide training to the USAF's pilots and aircrew on fighter, bomber, cargo, air tanker, unmanned aerial and special operations fixed-wing and rotary-wing platforms. Focus will be on aircraft operations, weapons, navigation, command, and individual and aircrew events control for single aircraft to large-scale, combined with force mission rehearsal training.

The contract aims to reduce acquisition lead times on active Air Force, Air Force Reserve, Air National Guard and Foreign Military Sales training and sustainment programs.

L-3 Link had earlier provided advanced training solutions on the F-16 Aircrew Training Devices, Predator Mission Aircrew Training System and T-1A Ground-Based Training System, among others to the USAF under the TSA II contract.

The unit invested substantially in new technologies and methods of training, and incorporated them in the TSA II programs, which resulted in improved training potential for the service. It remains committed to continue these investments in next-generation solutions that will allow the USAF to obtain low-risk, technically advanced solutions and deliver instant benefits to pilots, aircrews and maintenance professionals.

L-3 Link offers total training system solutions for operators and maintainers to military and commercial customers. It is a lead provider of safety, security, and information management systems. The company also delivers armed forces with military technology, such as command, control, communications, computers, intelligence, surveillance, targeting acquisition and reconnaissance systems.

Given the clear signs of a bottoming of the U.S. defense industry, L-3 Communications is focused on providing value through innovative and affordable solutions that continue to reshape its portfolio. It is now transforming its business portfolio to focus better on the defense electronics, communications and Intelligence, Surveillance & Reconnaissance markets, in which it already enjoys a leading position.

Zacks Rank

L3 Communications currently has a Zacks Rank #3 (Hold). A better-ranked stock in the broader aerospace and defense sector is LMI Aerospace Inc. LMIA, sporting a Zacks Rank #1 (Strong Buy). Other well-ranked stocks in the broader aerospace and defense space include The Boeing Company BA and Lockheed Martin Corp. LMT, both carrying a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>