Britain's BAE and Rolls-Royce Win Millions in Latest Round of Pentagon Contracts

The Department of Defense announced 64 separate contract awards worth $3.51 billion Wednesday. Most of these went to U.S. defense contractors. Four, however, went to contractors owned by our U.K. allies across the pond. Specifically, Rolls-Royce (NASDAQOTH: RYCEY  ) (LSE: RR  ) was awarded:

  • A $50.7 million option exercise requiring it to perform intermediate and depot-level maintenance and related logistics support for approximately 223 in-service F405-RR-401 Adour turbofan engines powering T-45 Goshawk training aircraft for the U.S. Navy. Rolls will be working on this contract through March 2014.
  • A $17 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract for the depot repair of T56-A-427 engines that power the Navy's E-2 Advanced Hawkeye airborne early warning aircraft, including the repair of 20 power sections, 10 torque meters, 20 gearboxes, and various accessories. This work should be completed by September 2014. This contract appears to be separate from a similar T-56 engine-repair contract awarded to Rolls yesterday.

Meanwhile, fellow U.K. defense contractor BAE Systems (NASDAQOTH: BAESY  ) (LSE: BA  ) won two defense contracts of its own:

  • An $18.2 million contract modification hiring BAE to do additional the work on U.S. Navy landing helicopter dock USS Kearsarge (LHD 3), including planning and execution of depot-level maintenance and upgrades to improve the ship's military and technical capabilities by April 2014.
  • A $13.6 million contract modification extending BAE's contract to operate and maintain Navy communication, electronic, and computer systems in Oahu and Geraldton, Australia, through Sept. 30, 2014. This contract contains additional options periods which, if exercised, could extend its duration through May 2015. 

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