Pentagon Awards $1.64 Billion in Defense Contracts

Northrop Grumman, Esterline Technologies, and Royal Dutch Shell all benefit.

May 2, 2014 at 12:33PM

The Pentagon on Thursday announced 11 new defense contracts worth a total of $1.64 billion. Defense contractor Northrop Grumman (NYSE:NOC) won two of them (and potentially, a piece of a third). Northrop's outright wins were:

  • A $27.3 million firm-fixed-price, multiyear contract to supply the U.S. Army with up to 111 point-of-presence A-Kits and up to 525 soldier network extension A-Kits as part of a series of upgrades to be made on all-terrain mine-resistant, ambush-protected vehicles. Delivery is due April 29, 2017.
  • A $10.8 million cost-plus-fixed-fee contract to develop for the U.S. Navy and integrate Multi Capability Pods, or MCAPs, into the Navy MQ-8C Fire Scout robotic helicopters. MCAP provides multiple electronic warfare sensors for employment in littoral waters. Two MCAPs and one MCAP Mass Model will be constructed and delivered to the Navy by the June 2015 due date.


  • Esterline Technologies (NYSE:ESL) subsidiary Armtec Countermeasures. won a $29.9 million indefinite-delivery/indefinite-quantity delivery order contract to manufacture for the U.S. Navy a "simulator, flare," and SM-875/ALE. The SM-875B/ALE is a training flare that can be used to train pilots and ordnance technicians in the use and handling of decoy flares. Delivery of these items is due by April 2017.
  • Royal Dutch Shell (NYSE:RDS-A) subsidiary Shell Marine Products received a $15 million option-year extension on a previously awarded indefinite-delivery/indefinite-quantity contract to supply "lubricant oil products" to the Engineering Directorate of the Military Sealift Command and other government agencies. Unspecified "related services" will also be provided, and work on this extended contract will now continue through at least May 4, 2015, and potentially longer if subsequent options are exercised. The Pentagon noted that exercise of all available options would keep Shell at work through May 2018.


Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of 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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