Boeing Wins $112.5 Million in Defense Contracts

The Department of Defense awarded 14 defense contracts in its Thursday evening announcement of contract awards. The total value of contracts awarded was $526.7 million. Boeing (NYSE: BA  ) won two of these, including the biggest contract of the day.

Boeing's big win was a $103.8 million firm-fixed-price contract that will fund the purchase of long-lead items needed to build Full Rate Production Lot 5 AH-64E Apache attack helicopters on order for the U.S. Army. The Army is currently engaged in a project to build new AH-64Es, and upgrade existing Apaches to the latest AH-64E configuration, which will see 634 AH-64Es produced when all is said and done. This current contract for Production Lot 5 is expected to run through Dec. 31, 2014.

Boeing's soon-to-be-upgraded AH-64D Apache. Photo: Boeing.

Additionally, Boeing won an $8.7 million cost-plus-fixed-fee delivery order to perform software updates on U.S. Navy P-8A Poseidon submarine-hunting aircraft. The Navy is expected to buy a total of 117 Poseidons from Boeing. Earlier this year, the Navy placed an order for Boeing to supply it with 16 Poseidons for a purchase cost of $2.07 billion. Delivery of those aircraft is due in April 2017. This current contract for software upgrades should be completed by August 2015.

Boeing's P-8A Poseidon. Source: U.S. Navy

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Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

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