Pentagon Names 15 Winners of a Near-$900 Million Contract Award

The Department of Defense issued a sizable "umbrella" contract award on Wednesday for the provision of business and force support services for the Navy. Characterized as an indefinite-delivery/indefinite-quantity (IDIQ), cost-plus-fixed-fee, performance-based contract, with provisions for fixed-price-incentive (firm target) and firm-fixed-price task orders, the DoD's award actually consists of multiple contracts permitting multiple companies to bid on future work for the military. In all, 15 separate companies have been given the right to bid on individual projects, or task orders, to be awarded under the umbrella contract. These companies include the following publicly traded names:

  • BAE Systems
  • Booz Allen Hamilton
  • CACI
  • CGI Group
  • Computer Sciences
  • General Dynamics' (NYSE: GD  ) One Source subsidiary
  • Engility (NYSE: EGL  )
  • Hewlett-Packard's (NYSE: HPQ  ) HP Enterprise Services subsidiary
  • Lockheed Martin (NYSE: LMT  ) Information Systems & Global Solutions
  • SAIC (NYSE: SAI  )
  • URS Federal Services

In addition, privately held companies Deloitte Consulting, MC Dean, Scientific Research, and Secure Mission Solutions were named winners of the overarching contract.

This contract, which begins with a single base year, to be followed by up to four one-year extensions, has an estimated ceiling value of $179.9 million for Year 1. If all options are exercised, the ultimate value of the contract could rise as high as $899.5 million. Again, if all options are exercised, the contract could run through May 2018. Without extensions, it could expire as early as May 2014.

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Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

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