Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Pentagon Expands $7 Billion Power Purchase Agreement to Cover Biomass

The Department of Defense announced 51 new contracts worth $2.14 billion on Monday. It also amended a 52nd contract -- the very same $7 billion alternative energy "Power Purchase Agreement" that we've been hearing so much about lately and the subject of today's story.

The contract in question is described as a $7 billion potential multiple vendor indefinite-delivery/indefinite-quantity, firm-fixed-price, non-option, non-multiyear contract, and it was awarded to a total of 13 separate companies out of the 52 companies that bid on the contract. For the most part, these companies were either small, privately owned firms or subsidiaries of foreign-listed firms not trading on American stock exchanges -- or both. A few "name-brand" firms did win slots in the contract, however, namely:

  • Honeywell International (NYSE: HON  )
  • Siemens (NASDAQOTH: SIEGY  ) Government Technologies
  • Vectren  (NYSE: VVC  ) subsidiary Energy Systems Group
  • and an entity described as the MidAmerican/Clark Joint Venture -- MidAmerican is a subsidiary of Warren Buffett's Berkshire Hathaway (NYSE: BRK-A  ) (NYSE: BRK-B  )

Each of these 13 firms will now be able to bid on "task orders" to be funded out of the $7 billion that the Pentagon has allocated for spending on "energy from renewable and alternative energy production facilities that are designed, financed, constructed, operated and maintained by private sector entities."

In the case of Monday's contract, the companies named will be competing for the right to supply energy derived from "biomass technology." But complicating matters further, they will also be bidding against some three dozen other companies also competing to sell solar, wind, and geothermal alternative energies to the Pentagon.

So far, Siemens has won slots in three of the four alternative energy competitions announced under the Pentagon's Power Purchase Agreement -- for wind, solar, and now biomass.

Read/Post Comments (0) | Recommend This Article (2)

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.

Compare Brokers

Fool Disclosure

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: 2650760, ~/Articles/ArticleHandler.aspx, 9/26/2016 3:30:25 AM

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...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
BRK-A $217750.00 Down -2249.90 -1.02%
Berkshire Hathaway… CAPS Rating: *****
BRK-B $145.00 Down -1.53 -1.04%
Berkshire Hathaway… CAPS Rating: *****
HON $115.98 Down -0.85 -0.73%
Honeywell Internat… CAPS Rating: ****
SIEGY $119.25 Down -0.43 -0.36%
Siemens AG (ADR) CAPS Rating: ****
VVC $51.64 Down -0.27 -0.52%
Vectren CAPS Rating: ****