Pentagon Awards $760 Million in Contracts

The U.S. Department of Defense awarded a total of only eight contracts on Tuesday, yet still managed to spend more than $760 million in the process. A single contract awarded to Textron consumed the bulk of the funds -- $641 million worth. Among the other winners:

  • Raytheon (NYSE: RTN  ) won a $28 million "option" exercise on a preexisting contract to supply MK54 Mod 0 lightweight torpedo kits and related engineering and repair services to the U.S. Navy. Raytheon will produce 150 torpedo kits under this option exercise, delivering them by November 2016.
  • Britain's BAE Systems (NASDAQOTH: BAESY  ) was awarded a contract modification adding 106 work items to the list of repairs to be made on the guided missile destroyer USS Chafee (DDG 90) while it is in dry dock. This work, which will be performed on location in Pearl Harbor, Hawaii, should be completed by February 2014.
  • And the Berger Cummins joint venture between privately held consulting firm The Louis Berger Group and Cummins' (NYSE: CMI  ) Power Generation subsidiary was awarded a firm-fixed-price, option-eligible contract worth up to $8 million to provide 30 megawatts of temporary power to U.S. forces stationed at Bagram Airfield, Afghanistan. 

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2603421, ~/Articles/ArticleHandler.aspx, 8/28/2014 11:21:39 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