Lockheed Martin Awarded $212 Million Contract for MTA Security System

Strategic Insights -

The Metropolitan Transportation Authority's decision to award Lockheed Martin a $212 million contract for a sophisticated surveillance system has raised eyebrows among experts. The system, designed by an unusual coalition working with Lockheed, will incorporate video cameras, motion sensors, and computers to provide an unprecedented level of security for the city's transit system. Despite Lockheed's checkered past in New York City, including a 1986 extortion scandal and a cancelled contract in 1993, the transportation authority has previously given the company work on several occasions.

Key Takeaways:

  • Lockheed Martin's Lockheed Martin IMS business unit, which was at the center of controversy, was sold to another company in 2001 for $825 million.
  • The $212 million contract is over a third of the MTA's $591 million counterterrorism budget.
  • The surveillance system will integrate video cameras, motion sensors, and computers to provide real-time security monitoring.
  • Lockheed beat out two other companies to win the three-year contract.
  • The MTA's emphasis on a web of electronic surveillance is being closely watched by experts, with some cautioning that the success of the effort may rely on the company's partners, which have a range of expertise.
  • Lockheed partners Lenel Systems International and Intergraph Corporation bring expertise in security system software and computer systems that can capture and transform multiple forms of information.
  • The MTA has previously given work to Lockheed on several occasions, despite the company's controversial record in New York City.
  • The authority's strategy is similar to the Pentagon's reliance on wireless networking as a way of integrating military forces.

Statistics:

  • $212 million: The value of the Lockheed Martin contract for the MTA security system.
  • $591 million: The MTA's counterterrorism budget.
  • $17 million: The value of a 1994 deal between the MTA and Lockheed for parking fine collection.
  • $95 million: The value of a 1997 data-processing contract between the MTA and Lockheed that was over Mayor Rudolph W. Giuliani's objections.
  • $825 million: The price at which Lockheed Martin IMS was sold to another company in 2001.

Sources:

  • Article by an unnamed author, published in The New York Times on an unspecified date.
  • Federal records and reports from the Project on Government Oversight.
  • Internal documents from the Lockheed Martin Corporation.
  • Inspected city records and reports from the Department of Investigation.