The Department of Defense announced 38 defense contracts Monday with a total value of $7.14 billion. Northrop Grumman (NYSE:NOC) was easily the day's biggest winner, collecting three contract wins -- including the biggest award of the day.
That award, a $3.64 billion contract modification, accounted for more than half the funds on offer Monday. This modification definitized (i.e., set a final price on) the sale of 25 full rate production E-2D Advanced Hawkeye airborne early warning aircraft for the U.S. Navy under a multiyear contract, as well as the cost of "advanced acquisition" of parts necessary to build the aircraft. Final delivery of all aircraft is expected to be complete by August 2021.
Additionally, Northrop Grumman won two related awards:
- a $10.3 million firm-fixed-price delivery order to procure avionics source data needed for future acquisition program sets to test the E-2D Advanced Hawkeye. This contract will run through December 2016.
- a $6.7 million contract modification to supply the U.S. Navy with two spare E-2D Advanced Hawkeye engines. Delivery is due September 2015.
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.