Lockheed Martin officials say increase demand for AEHF is likely to continue. Image credit: Lockheed Martin

[Satellite TODAY 08-09-13] Lockheed Martin is expecting to see an increase demand for AEHF satellites over the next several years. “AEHF is a critical asset to both tactical users and the highest offices of government,” said Mark Valerio, vice president of Lockheed Martin’s military space line of business during an exclusive interview with SatelliteTODAY.com.

However, Valerio notes that despite the increased demand for more secure, ultra high frequency satellite systems, Lockheed officials are mindful of military space customers who are facing budgetary challenges and have to make some tough choices.

“We’ve been listening carefully to them about their satellite requirements and we are concentrating on how best to deliver the perfect balance, or nexus, of affordability, capability and resiliency. Most recently, we conducted a study to help quantify the resiliency of our space architectures and we’re briefing this around our customer circles,” Valerio said. “The feedback we have been receiving and the resulting dialogue has been very constructive.”

He also noted ongoing discussions regarding smaller satellites and payloads. “If the market shifts more this way, I am confident that Lockheed Martin will be able to offer our customers continued value. Sometimes people overlook the fact that Lockheed Martin has deployed more than 150 hosted payloads and hosted more than 300 payloads,” he said. “We have actually launched more than 150 satellites weighing less than 1,000 lbs.”

Valerio also points out that AEHF has three international partners (UK, Canada, Netherlands), and all are scheduled to make their first connections by year’s end. “Our system is working, in demand, and ready for the future. We are helping [by] developing affordable terminals that will put this capability in the hands of more tactical users, and we have reserve capacity for even more growth,” he said.

And growth is expected throughout the remainder of 2013. “We have a healthy backlog of contracts,” Valero said while declining to comment on specific numbers because of uncertainty stemming from the U.S. government’s budget sequestration’s impact on business.

Valerio said sequestration leaves many questions unanswered as far as the long-lasting impacts. “We expect to see sequestration’s impacts grow as the government’s full year fiscal 2013 cuts are realized,” Valerio, said. “But as we anticipated, it is taking time for our customers to determine how they will implement sequestration, and we’re working closely with them,” he added, noting that Lockheed has only noticed a “minimal impact from sequestration,” so far.

But even with budget concerns, the improved communications technology available through the AEHF satellites has generated excitement within the military, law enforcement and intelligence community.

Earlier in 2013, Lockheed Martin was awarded a contract to manufacture two AEHF satellites for the U.S. Air Force in a deal that was expected to generate nearly $2 billion. According to Valerio, the deal involves the AEHF Space Vehicles 5 and 6, which are in the final stages of contract negotiations. “We are finalizing terms of the contract, but we are committed to the schedule. Production on those space vehicles has already begun,” he added.