February 26, 2013
On Tuesday, the Department of Defense announced that it has awarded indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contracts worth a combined $397.3 million to Oceaneering International (NYSE: OII ) and General Dynamics' (NYSE: GD ) Electric Boat Corporation.
The contracts relate to the submarine safety program and require the companies to provide "technical management, administrative and technical services, materials, tools, equipment, facilities, and required support to accomplish installation, troubleshooting, repair, and maintenance of main and auxiliary, weapons, hull, mechanical, and electrical equipment."
Both contracts are expected to be complete by February 2018. Of the two, General Dynamics won the larger dollar value: $215.5 million. Oceaneering International's award may be more significant for investors, however. The $181.8 million contract it won amounts to about 6.5% of all the revenues it collected over the past 12 months.