Pentagon Awards $885.7 Million in Defense Contracts Wednesday

Winners include Ball Aerospace, L-3 Communications, Esterline Technologies, Raytheon, and QinetiQ.

May 1, 2014 at 9:37AM

In a sudden (and this year, uncharacteristic) frenzy of buying activity, the Department of Defense awarded 26 separate defense contracts in its Wednesday evening announcement of contract awards. The total value of contracts awarded was $885.7 million. Among the companies winning contracts:

  • Ball Aerospace (NYSE:BLL) won a $23.9 million firm-fixed-price contract to supply the U.S. Navy with "Stalker" long-range electro-optical/infrared/laser range finders, which are used as part of the NATO Seasparrow Missile System MK 57 on the MK 9 Tracker Illuminator System. Delivery of this equipment is due in April 2016.
  • L-3 Communications (NYSE:LLL) was awarded a $10.5 million contract modification to perform 26,752 hours' worth of systems technical support on Bradley Fighting Vehicle transmissions for the U.S. Army through June 30, 2015.
  • ARMTEC, which S&P Capital IQ notes is a subsidiary of Esterline Technologies (NYSE:ESL), won a $9.9 million firm-fixed-price, indefinite-delivery, sole-source contract to design, develop, maintain and manufacture systems using combustible and consumable type products technology for the Army Research, Development, and Engineering Command through May 1, 2019.
  • Britain's QinetiQ (LSE:QQ) won an indefinite-delivery/indefinite-quantity contract worth up to $7.8 million for work on the U.S. Air Force's Battlefield Air Targeting Man-Aided Knowledge II, or BATMAN II, Advanced Technology Demonstration Program, along with a $218,128 cost-plus-fixed-fee task order for BATMAN II. This contract will continue in force through April 30, 2020.
  • Raytheon (NYSE:RTN) won a $6.6 million cost-plus-fixed-fee contract to do maintenance work and all-up-round recertifications on U.S. Navy Evolved Seasparrow Missiles through at least December 2016. This contract includes options that, if exercised, would extend its duration and increase the total value of this contract to $15 million.

Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of L-3 Communications Holdings and 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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information