Pentagon Awards $1.6 Billion in Defense Contracts Monday

IBM, Northrop Grumman, and L-3 Communications win awards.

Mar 11, 2014 at 9:47AM

The Department of Defense awarded nine separate defense contracts Monday, worth $1.6 billion in total. Among the publicly traded companies winning contracts:

  • L-3 Communications (NYSE:LLL) and privately held Communications & Power Industries were awarded a pair of firm-fixed-price, five-year, indefinite-delivery/indefinite-quantity, partial-foreign military sales multiple-award contracts worth $67.7 million in total. The firms will be asked to evaluate, rebuild, and produce double-duty cross-field amplifiers for AN/SPY-1D(V) Radar Systems, which will be used both at sea aboard U.S. Navy and foreign guided missile destroyers, and ashore at Aegis Ashore missile defense bases. Each company will be guaranteed at least $184,985 in initial orders. They will have to compete to win the bulk of the funds to be awarded under these contracts, however, bidding against each other as subsequent orders are placed. This contract will run through March 2019.
  • Northrop Grumman (NYSE:NOC) won a $12.4 million firm-fixed-price, indefinite-delivery/indefinite-quantity, partial-foreign military sales contract to produce special operating force laser aiming markers (SOFLAM), ground laser target designators (GLTD), also spare parts, for the U.S. Navy and for the militaries of Romania and Lithuania. According to the Pentagon, the SOFLAM/GLTD is a lightweight, integrated, highly specialized, ruggedized laser target designator viewing device that is used to guide precision munitions to their target. Deliveries are due March 2018.
  • IBM (NYSE:IBM) was awarded an $8.5 million option exercise on a preexisting Army Learning Management System contract to deliver training around the clock for U.S. Army soldiers and civilian employees. This contract will run through March 20, 2015.

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Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of International Business Machines, L-3 Communications Holdings, and Northrop Grumman. 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.

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