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Pentagon Awards $7.42 Billion in Contracts

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The Department of Defense issued 10 new contracts on Tuesday worth a combined $7.42 billion. Notwithstanding the large headline number, one single contract for the supply of wind energy to the U.S. Army accounted for 94% of the funds on offer.

As for the remaining cash, it mostly got parceled out in smaller bundles. A few of the notable winners:

  • The Longbow joint venture between Lockheed Martin (NYSE: LMT  ) and Northrop Grumman (NYSE: NOC  ) won a $51 million firm-fixed-price, non-option eligible, non-multiyear foreign military sales contract to supply the Republic of Korea with six Longbow fire control radar systems to be installed aboard Boeing (NYSE: BA  ) Apache attack helicopters. Last month, Boeing received official confirmation that it has won a contract to supply the Korean military with three dozen Apaches -- thus, additional Longbow purchases may be expected.
  • Speaking of Boeing, that company also won an Apache-related award. The U.S. Army issued Boeing a $14.4 million firm-fixed-price, option eligible, non-multiyear contract to sell it four Longbow crew trainers for the Apache helicopter.
  • Meanwhile, Lockheed Martin won a separate contract Monday. Worth $10.2 million, it hires Lockheed to develop, maintain, and upgrade the U.S. Navy's Visual Interactive Simulated Training Application (VISTA). VISTA is described as being "a flexible high-fidelity computer based networked system that provides a training environment for both operation and corrective maintenance tasks on selected combat systems" at the Navy's Center for Surface Combat Systems. About 75% of the value of this contract is designated as a "foreign military sale" benefiting the militaries of not the United States, but rather Japan, Norway, Pakistan, and Spain.
  • Finally, Raytheon (NYSE: RTN  ) won a $9.7 million contract modification hiring it to repair and return-to-owner damaged Patriot missile parts. This contract was a foreign military sale to: Israel, Japan, Korea, Kuwait, the Netherlands, Saudi Arabia, Taiwan, and the United Arab Emirates.

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