Lockheed Martin, which won a big defense contract and then state economic incentives to bring the work to Kentucky, is making a change that could result in 400 more jobs being moved in-house.
On Aug. 8, the defense contractor notified a subcontractor in its logistics support services work at Bluegrass Station that it would move the work to Lockheed Martin directly when the contract expires at the end of September.
"This decision will help ensure we provide our customers with services and products at the most affordable price given the challenging budget environment," said Heather Kelly, a Lockheed Martin spokeswoman. "We believe we can achieve greater efficiencies and synergies by this action."
The subcontractor, known as DS2, will continue the work until Sept. 30, when Lockheed will take over. Kelly said the company anticipates filling more than 400 positions "in the near term to address this change in contract."
DS2 employees may apply for any of the positions, but Lockheed can't recruit them directly, she said. It isn't clear whether a similar number of DS2 employees will be affected by dropping the contract or whether the jobs will have similar salaries.
In February, the state approved more than $15 million in tax breaks and incentives for Lockheed Martin on the condition that it bring 224 new jobs to Bluegrass Station in Avon in Fayette County. Kelly said these jobs are separate from those that will replace DS2's subcontracted work.
Lockheed Martin also pledged $26 million in investments at Avon to improve existing equipment, tools and facility infrastructure.
The tax incentives, which can be claimed over the next 10 years, will pay for upgrading existing state-owned facilities currently employed in refurbishing military aircraft and vehicles.