After taking Thursday off, the Department of Defense awarded 15 defense contracts Friday, worth a total of $594.1 million. Defense contractor Northrop Grumman (NYSE:NOC) won one of them -- and part of a second.
The first contract, a sole-source, firm-fixed-price contract worth $12.4 million, has the company supplying a Spectrum Monitoring Subsystem for installation at six U.S. Army Remote Monitor Control Equipment locations that support the U.S. Army's Wideband Global SATCOM and Defense Satellite Communication System satellite constellations. When this contract was solicited last month, the Army identified Northrop Grumman as the only defense contractor capable of producing the necessary equipment to meet the Government's "urgent timeline and performance specifications." Delivery is due by Feb. 13, 2016.
Northrop has also won, along with privately held Sierra Nevada, a firm-fixed-price, indefinite-delivery/indefinite-quantity multiple award contract to supply the U.S. Marine Corps with counter radio-controlled improvised explosive device, or IED, electronic warfare Marine Expeditionary Unit Special Operation capable dismounted (i.e., not installed in a vehicle) systems. This equipment is used to jam radio signals transmitted to explode IEDs. The total value of this contract is up to $90 million, and both Northrop and Sierra Nevada will be able to bid to fulfill individual task orders under the contract over its 60-month duration. A total of 370 jamming systems are likely to be ordered through the contract's end in February 2019.
Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Northrop Grumman. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.