Lockheed Martin the Big Winner as Pentagon Awards $1.47 Billion in Defense Contracts

The Department of Defense awarded only nine defense contracts in its Monday evening announcement of contract awards. The total value of contracts awarded was $1.47 billion.

The day's single biggest winner was defense contracting giant Lockheed Martin (NYSE: LMT  ) , recipient of a $278.6 million contract modification funding nonrecurring sustainment activities (i.e., one-time expenses) related to its supply of Low-Rate Initial Production Lot VI F-35 Lightning II stealth fighter jets to the U.S. Navy and Air Force. Over the course of the next three-plus years, Lockheed Martin will be performing work on maintenance supply depots for the F-35, with these activities expected to wrap up in October 2018.

Lockheed was also awarded a $28.4 million contract modification to supply the Kuwaiti military with Launcher Modification Kit Phase II Redesigns for its Patriot PAC-3 air defense systems. Delivery is due Sept. 30, 2017.

Other publicly traded companies winning contracts included:

  • Northrop Grumman (NYSE: NOC  ) , which won a five-year contract to provide up to $61.2 million worth of logistics support work on U.S. Navy WSN Ring Laser Gyro Navigation Systems, AN/BPS-15/16 Radar Set Weapon Systems, Guided Missile Destroyer Steering/Scalable Integrated Bridge Systems, and SPQ-9B Radar Set items through July 14, 2019.
  • BAE Systems (NASDAQOTH: BAESY  ) won a $12.4 million contract to supply 132 Mode 5 Combined Interrogator Transponder (CIT) Kits (used aboard F/A-18 fighter aircraft) to the U.S. Navy, 69 more units to Finland, 46 to Australia, and two to Switzerland. Additionally, BAE will supply 26 power supply Shop Replaceable Assemblies to the U.S. Navy; eight Integrated CIT systems to Finland and two more to Switzerland. Delivery is due March 2017.
  • IBM (NYSE: IBM  ) was awarded a $12.2 million modification to a contract to provide "services supporting Army General Fund Audit Readiness." The estimated completion date on this contract is now Jan. 19, 2015.
  • Boeing (NYSE: BA  ) was awarded a $6.9 million contract modification to supply 35 SUU-789A/A centerline pylons to the U.S. Navy, and 15 more to the Royal Australian Air Force. Boeing will also supply 11 well covers for towed ALE-50 anti-missile decoys used by U.S. fighter jets. Delivery of all these plane parts is due May 2017.

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Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

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