The Department of Defense announced 18 new defense contracts worth a combined $613.9 million on Friday. Three of these contracts, however, went not to U.S. defense contractors but to defense companies based in Europe.
Specifically, EADS' (EADSY -0.67%) North American unit won a $33.2 million firm-fixed-price contract with attached "options," to supply the U.S. Army with at least six Eurocopter UH72A Lakota light utility helicopters and six airborne radios. Delivery is due by Dec. 31 of next year.
Also, two separate BAE Systems (BAES.Y 1.32%) (LSE: BA) divisions won contracts:
- BAE Systems Information & Electronic Systems Integration won an $11.6 million cost-plus-fixed-fee contract to perform engineering services and provide technical data and training to the U.S. Army, sufficient to permit Army maintenance technicians to repair AN/APX-124 Mode S/5 Identification Friend or Foe Transponder Systems on their own. Work on this contract will run through June 6, 2016.
- And BAE Systems Technology Solutions won a $56.5 million cost-plus-fixed fee, cost-plus-incentive fee contract to perform work on United States and United Kingdom Trident II D5 submarine-launched ballistic missiles. This contract includes work on weapon system coordination, safety class engineering, installation testing, logistical support and other and related services. BAE will also be performing work on development of the Common Missile Compartment concept. This contract is expected to run for a one-year base term ending on Sept. 30, 2014, but may be extended by two optional one-year periods after the base period expires. In the event both option-years are exercised, the contract could increase in value up to a maximum amount of $171.4 million.
