Pentagon Awards 16 Contracts Worth $8.3 Billion

After a slow start to the week Monday, the Department of Defense kicked its contracts-awarding machine into high gear Tuesday. In the space of 16 short contracts, the Pentagon doled out more than $8.3 billion in new contracts in a single day.

The vast majority of these funds went to a handful of energy companies providing renewable energy to the Army Corps of Engineers. Several other significant contracts were also awarded, including:

  • $14.6 million for Boeing (NYSE: BA  ) , recipient of a modification to a previously awarded contract to provide service and logistics support for Navy P-8A subhunter aircraft (which it built), along with supply of consumable parts, repair work, and engine removal and replacement. This contract runs through November 2013.
  • $15.4 million for Britain's Ultra Electronics (NASDAQOTH: UEHPY) under an indefinite-delivery/indefinite-quantity (IDIQ), firm-fixed-price, performance-based contract to perform engineering and technical work in support of Air Defense Systems Integrator systems, communication systems, and satellite communication systems for the Navy. This contract includes options to extend its duration and increase its value which, if exercised, could keep Ultra at work through May 2016, and raise the contract value to $44.5 million.
  • $25 million for Eaton's (NYSE: ETN  ) Aerospace division for the procurement of hydraulic parts for use on Boeing CH-47 Chinook helicopters.
  • $22 million for L-3 Communications (NYSE: LLL  ) in the form of a modification to a previous contract to supply Hydromechanical Power Train 500-3ECB transmissions to the Army. The 500-3ECB powers the Army's Bradley Fighting Vehicle, and has historically been built by General Dynamics

One non-publicly traded company -- General Atomics Aeronautical Systems -- received a sizable contract worth highlighting. GA was awarded $110.3 million Tuesday under a previously awarded cost-plus-incentive-fee contract to support Army Gray Eagle Unmanned Aircraft Systems (which it built) flying in Afghanistan. According to the Pentagon, the cumulative face value for GA on this drone contract now tops $354.6 million.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2417131, ~/Articles/ArticleHandler.aspx, 4/19/2014 6:07:02 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement