Pentagon Awards Contracts for Battery Supply, HVAC Work

EnerSys and Exide will supply the batteries, while Johnson Controls does A/C and refrigeration work for the Navy.

Feb 21, 2014 at 7:50PM

The Department of Defense awarded 13 defense contracts Friday, worth a total of up to $590.4 million. Among the winners:

  • Battery manufacturer EnerSys (NYSE:ENS) won a fixed-price with economic-price-adjustment contract worth up to $40.3 million to supply the U.S. Army with storage batteries. This three-year contract will run through Feb. 20, 2017, and will not be extended.
  • Rival battery manufacturer Exide Technologies (NASDAQOTH:XIDEQ) won a similar, but smaller, fixed-price with economic-price-adjustment contract worth up to $18.5 million, also for storage batteries, and also with the U.S. Army being the buyer. This contract will also run through Feb. 20, 2017 and will not be extended. The curious thing about this one is that the company actually filed for Chapter 11 bankruptcy protection back in June.
  • Johnson Controls (NYSE:JCI) won a contract -- but although Johnson makes batteries, its contract is not for batteries. Instead, the company's York International Corp subsidiary has won an $11.1 million indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee/firm-fixed-price contract to perform research and development work, testing, and evaluation on shipboard air conditioning and refrigeration modernization programs for the U.S. Navy. This contract is expected to be complete by February 2017.

Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

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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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