The Department of Defense announced $4.92 billion worth of new awards Tuesday, in the form of eight separate defense contracts, but just one of these contracts was worth four times more than all the rest, combined.
The contract in question, a maximum $4 billion contract called "Combating Weapons of Mass Destruction Research and Technology Development IDIQ," is an indefinite-delivery, indefinite-quantity contract that authorizes seven different defense contractors to bid on individual task orders as they arise. The task orders will relate to research and development and scientific and technological solutions work on matters of non-proliferation, counterproliferation, and "consequence management." It will be awarded over the course of a five-year initial base period, to be followed by an optional five-year extension that could stretch the contract out to Dec. 3, 2023. Crucially, the contract's $4 billion ceiling value would not increase even in the event of such an extension.
Contract winners as of now include:
- Engility Corp (NYSE: EGL )
- Exelis (UNKNOWN: XLS.DL )
- Leidos, Inc (NYSE: LDOS )
- Northrop Grumman (NYSE: NOC )
- Raytheon (NYSE: RTN )
- Privately held defense contractors Alion Science and Technology and Applied Research Associates.