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

Lockheed Martin is the day's big winner. Northrop, Boeing, BAE, and IBM also win contracts.

Jul 15, 2014 at 4:06PM

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.

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. And there's one small company making Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple, International Business Machines, Lockheed Martin, and 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.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers