Pentagon Awards $1.88 Billion in Medical Equipment Contracts

The Department of Defense awarded 14 separate defense contracts Wednesday, worth $2.25 billion in total. Two of the largest awards handed out concerned the supply of medical equipment for the Defense Logistics Agency's Troop Support division.

In the larger of the two awards, Siemens' (NASDAQOTH: SIEGY  ) Medical Solutions Inc subsidiary was awarded an option year (the fifth of seven possible) worth up to $1.79 billion to supply radiology systems, subsystems, accessories, and parts, plus servicing and repairs for same, to the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies through March 30, 2015.

 In the smaller, Hitachi's (NASDAQOTH: HTHIY  ) Medical Systems America Inc subsidiary was awarded a similar, but smaller contract modification -- again, the fifth of seven possible one-year exercisable options for supplying equipment to the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies. Similar to Siemens' award, the contract states that it is for the supply of radiology systems, and also "components, upgrades, accessories, and installation" services. This award has a maximum potential value of $90.2 million and runs through March 29, 2015.


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