Pentagon Awards $2.42 Billion in Defense Contracts Tuesday

Raytheon to supply Navy with RAMs, Novartis will inoculate against encephalitis, and American Apparel makes apparel for Americans.

Jun 25, 2014 at 1:18PM

The Department of Defense awarded 16 defense contracts in its Tuesday evening announcement of contract awards, released after stock markets closed for the day. The total value of contracts awarded came to $2.42 billion -- the largest such one-day contract announcement in weeks.

Raytheon (NYSE:RTN) won one of the day's larger awards, a $73.4 million firm-fixed-price contract to supply the U.S. and allied navies with rolling airframe missile, or RAM, round packs as required, and to supply spare missiles to the German military in particular. Raytheon's RAM, which was co-developed by and is co-produced with the German government, is an anti-ship-missile defense system capable of deployment aboard multiple ship platforms. Deliveries under this contract will continue through November 2016.

Raytheon's RAM in flight. Photo: Raytheon.

Among the other companies winning contracts, Novartis (NYSE:NVS) won a firm-fixed-price contract to supply the U.S. Army, Navy, Air Force, and Marine Corps with up to $22 million worth of Japanese encephalitis, or JE, vaccine. According to the U.S. Centers for Disease Control, JE is "the leading cause of vaccine-preventable encephalitis in Asia and the western Pacific." This initial one-year contract will run through at least June 24, 2015, and may be extended through invocation of a one-year option period.

Also, scandal-plagued American Apparel (NYSEMKT:APP), which recently fired its CEO amid allegations of sexual harassment at the company, won two awards:

  • The second of four possible one-year option periods attached to a contract to produce various types of combat utility uniform trousers for the U.S. Marine Corps. Valued at up to $16.2 million, this contract is now expected to continue in force through June 27, 2015.
  • A separate option exercise -- also by the USMC, and again, the second one-year period out of a possible four one-year extensions -- to supply up to $15.3 million worth of various types of combat utility uniform blouses. This contract will also continue in force through at least June 27, 2015.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

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