The Department of Defense closed out last week with a massive $7.4 billion in new contract awards Friday. Nineteen separate companies shared in the Pentagon largesse, but one single set of companies took home the bulk of the winnings -- more than 93%.
On Friday, the Pentagon awarded a series of eight companies a massive $6.9 billion-maximum value, firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity (ID/IQ) contract for the supply of information technology products and services. The award fell under the umbrella Network Centric Solutions, or NETCENTS-2, program, and was issued to the following companies:
- Publicly traded General Dynamics' (NYSE: GD) Information Systems and Technology division.
- Iron Bow Technologies LLC.
These privately held names also took part in the spoils:
- Ace Technology Partners.
- CDW Government.
- CounterTrade Products.
- Intelligent Decisions.
- World Wide Technology.
The NETCENTS-2 program funds the purchase of off-the-shelf commercial products such as networking equipment, servers/storage, multimedia, and software for the U.S. Air Force's Internet Protocol Network.
Each participant in this contact will receive an initial $2,500 award, followed by additional, larger awards to be won in competition with each other as the contract proceeds. The contract duration is structured with an initial three-year base period, potentially followed by up to three successive one-year "option" periods -- six years in total.
Editor's note: A previous version of this article incorrectly characterized Iron Bow Technologies as a subsidiary.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.