FALLON, Nev. (AP) -- Civilian workers at Naval Air Station Fallon fear possible layoffs as they wait to see if fourth quarter operations will be funded and competitive bids are sought for some base operations.
Lockheed Martin's contract at the Naval base 60 miles east of Reno expires Oct. 1, and the next contract will be open to competitive bidding.
The defense-industry giant is paid an estimated $15 million a year for operations and maintenance of NAS Fallon's Tactical Air Combat Training System, or TACTS, and $5 million a year for Marine Corps Air Station Yuma in Arizona.
The two bases are on the same contract, along with several other satellite facilities managed by the two bases.
Lockheed's contract is funded quarterly. With ongoing military operations in Iraq and Afghanistan, money normally slated for training operations may be redirected, the Lahontan Valley News and Fallon Eagle Standard reported.
The company employees 200 workers at NAS Fallon.
Employees fear Lockheed may cut the work force to save money in the last three months of its five-year, multimillion dollar contract.
Lockheed Martin program manager B.J. Craig said the company is discussing possible layoffs and hour reductions, but only as a contingency plan.
"When we know there's a war going on, a lot of the money goes into the operating forces," he told the newspaper. "Sometimes you have to plan contingencies."
He added that it's premature to assume fourth quarter funding will be cut. The government appropriations will be announced by midsummer.
"Hopefully they come through will all the money and this is just a drill," Craig said.
Lockheed Martin maintains and operates the radar and monitoring equipment at NAS Fallon and records all the ins and outs of training missions for later evaluation.
Contracts are awarded by the Naval Surface Warfare Center in Corona, Calif.
