Raytheon, IBM, 8 Other Companies to Split Up to $960 Million Pentagon IT Project

The Department of Defense awarded nine defense contracts in its Monday evening announcement of contract awards, with a combined value of $1.47 billion, 65% of which was accounted for by just one contract. The contract in question, one of several that have been awarded in recent months under the U.S. Air Force's "NETCENTS-2" program, is described as a multiple award, indefinite-delivery/indefinite-quantity (ID/IQ) contract that will be worth up to $960 million to its several participants:

  • CACI
  • Jacobs Engineering (NYSE: JEC  )
  • L-3 Communications (NYSE: LLL  )
  • Lockheed Martin (NYSE: LMT  )
  • Raytheon (NYSE: RTN  )
  • Northrop Grumman
  • General Dynamics
  • IBM (NYSE: IBM  )
  • and two privately held contractors.

Under this contract, these companies will bid to provide the Air Force such services as sustainment, migration, integration, training, help desk support, testing and operational support as such services become required, and are opened up for bidding upon as "task orders."

The Air Force notes that this contract is the "mandatory source for all USAF units purchasing [Applications] services that fall under the scope of the contract" over the next 10 years. Other NETCENTS-2 categories, with other limits for funding, include Netcentric Products, Network Operations and Infrastructure Solutions, Enterprise Integration and Service Management, and Information Technology Professional Services.

No specific termination date of this contract was named, aside from the statement that the period of performance is 10 years.

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