The Department of Defense awarded 10 defense contracts in its Tuesday evening announcement of contract awards. The total value of contracts awarded was $1.04 billion. The vast majority of these funds were awarded not to American defense contractors, but to European ones. Namely:
- Britain's BAE Systems (NASDAQOTH: BAESY ) (LSE: BA ) won a $444.8 million firm-fixed-price contract to supply the U.S. Army with an unspecified number of Individual and Enhanced Night Vision Goggle III weapons sights, in a series of awards to be determined later. This five-year contract is expected to wrap up May 6, 2019.
- DRS RSTA, a subsidiary of Italy's Finmeccanica (NASDAQOTH: FINMY ) , likewise won a firm-fixed-price contract to supply the Army with Individual and Enhanced Night Vision Goggle III weapons sights. Its contract, however, is worth $367 million. As with BAE, the estimated completion date for this five-year contract is May 6, 2019.
- Airbus' (NASDAQOTH: EADSY ) EADS North America unit was awarded a $25.5 million contract modification exercising an option to have EADS provide logistics support for U.S. Army Lakota Utility Helicopters (UH-72A), and adding funds to the original contract for this work. The estimated completion date for this work is Nov. 30, 2015.
Among the U.S.-based winners:
- General Dynamics (NYSE: GD ) was awarded a $12.7 million contract modification to demilitarize and dispose of 78,000 depleted uranium rounds for the U.S. Army. This work should be completed by Sept. 30, 2015.
- Northrop Grumman (NYSE: NOC ) was awarded an $18 million cost-plus-fixed-fee delivery order to provide non-recurring engineering support for MV-22 Integrated Aircraft Survivability Equipment Suite upgrades on U.S. Marine Corps Osprey tiltrotor aircraft. This work will include integrating AN/AAQ-24(V)25 software with electronic warfare controllers and MV-22 mission computers, and will continue through April 2016.
- Lockheed Martin (NYSE: LMT ) won two awards: a $54.7 million contract modification incrementally funding Aegis Platform Systems Engineering Agent (PSEA) activities and Aegis Modernization Advanced Capability Build engineering work aboard U.S. Navy CG 57-class guided missile cruisers and DDG 51-class guided missile destroyers. (This contract will run through at least September 2015.. Also, a $6.8 million firm-fixed-priced delivery order to repair 11 command cockpit items aboard U.S. Navy H-60R/S helicopters. This work should be completed by Jan. 30, 2016.