GBU-12 Paveway II of the Paveway series) are produced by defense contractors Lockheed Martin and Raytheon. Raytheon began production after purchasing the product line from Texas Instruments. Lockheed Martin was awarded a contract to compete with Raytheon when there was a break in production caused by transferring manufacturing out of Texas. "Paveway II" refers specifically to the guidance kit, rather than to the weapon itself. See also GBU-16 Paveway II, where the same guidance unit is fitted to a Mk 83 1,000-lb bomb. The US Department of Defense has upgraded GBU-12 production versions to include GPS guidance modes. Lockheed Martin is the sole
Lockheed Martin of the time. In May 2001, Lockheed Martin sold Lockheed Martin Control Systems to BAE Systems. On November 27, 2000, Lockheed completed the sale of its Aerospace Electronic Systems business to BAE Systems for $1.67 billion, a deal announced in July 2000. This group encompassed Sanders Associates, Fairchild Systems, and Lockheed Martin Space Electronics & Communications. In 2001, Lockheed Martin won the contract to build the F-35 Lightning II; this was the largest fighter aircraft procurement project since the F-16, with an initial order of 3,000 aircraft. In 2001, Lockheed Martin settled a nine–year investigation conducted by NASA's Office of