Pentagon Awards $358 Million in Defense Contracts Wednesday

BAE, Raytheon, and Sysco's new subsidiary win awards.

Feb 19, 2014 at 8:42PM

The Department of Defense awarded only six defense contracts Wednesday, worth a total of $358.2 million. Among the publicly traded companies winning contracts:

  • Britain's BAE Systems (NASDAQOTH:BAESY) (LSE:BA) was awarded a $15.2 million contract modification funding the purchase of long lead-time materials needed to manufacture propulsors for the Virginia-class nuclear attack submarines SSN 792 and SSN 793. This contract should be completed by February 2015.
  • US Foods, soon to be owned by Sysco (NYSE:SYY), won a sole-source, fixed-price with economic-price-adjustment, bridge contract worth up to $72 million to provide "prime vendor food and beverage support" to the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies through Feb. 14, 2015.
  • Raytheon (NYSE:RTN) won a pair of contracts. The larger, worth up to $98.2 million, was a sole-source, firm-fixed-price, indefinite-delivery/indefinite-quantity contract to supply the U.S. Army and federal civilian agencies with unspecified "surveillance system spare parts" through Feb. 19, 2017. The smaller contract, a $35.5 million fixed-price-incentive contract, funds the purchase of three AN/AQS-20A sonar mine detecting sets, with ancillary equipment, for use aboard U.S. Navy Littoral Combat Ships. The AN/AQS-20A sonar mine detecting set is a mine hunting and identification system with acoustic and identification sensors housed in an underwater towed body. The acoustic sensors are designed for the detection, classification and localization of bottom, close-tethered, and volume targets in a single pass. The identification sensor is designed for the identification of bottom mines. Delivery of this equipment is due by February 2015, but the contract may be extended with additional "option" exercises. If all options on this contract are exercised, its value would rise to $199.7 million.

Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Sysco and owns shares of Raytheon. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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