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Boeing and Textron Win as Pentagon Awards $535 Million in Contracts

The Department of Defense awarded 13 separate defense contracts in its Monday evening announcement of contract awards and then followed that up with an even half-dozen contracts in Tuesday's release. In one of the biggest contracts in the two days, Textron Bell and Boeing will perform engineering work on U.S. Air Force CV-22 Ospreys.

In one of the week's biggest contracts, Textron Bell and Boeing will perform engineering work on U.S. Air Force CV-22 Ospreys. Photo: Wikimedia Commons.

The combined value of all contracts awarded so far this week is $534.7 million -- $348 million on Monday, and a further $186.7 million coming in last night. A total of five publicly traded defense contractors have benefited:

  • General Dynamics (NYSE: GD  ) , the only publicly traded defense contractor to win an award on Monday, was awarded a $65.2 million foreign military sales contract modification to provide additional training, logistics support, and maintenance services to the Iraqi M1A1 Abrams Program through Feb. 28, 2015. This was the third such award announced over the past week.
  • Northrop Grumman (NYSE: NOC  ) was awarded an $18 million contract modification funding continued work on the U.S. Air Force's Multi-Platform Radar Technology Insertion Program through March 31, 2017. The Pentagon noted that the total value of funds awarded Northrop under this contract have now topped $1.56 billion.
  • Lockheed Martin (NYSE: LMT  ) won a $16.9 million contract to prepare a prototype hardware/software system for the U.S. Air Force. The Air Force Research Laboratory is seeking "innovative solutions for multi-platform signal collection, processing, exploitation, and dissemination for new and existing Intelligence, Surveillance, and Reconnaissance platforms," and is hiring Lockheed to help build it. Work on this contract is expected to wrap up on July 21, 2016.

Finally, Boeing (NYSE: BA  ) won one contract, and a piece of a second to be shared with Textron (NYSE: TXT  ) :

  • The U.S. Army awarded Boeing a $65.4 million firm-fixed-price contract to supply it with 204 Cargo On/Off Loading System, or COOLS, A-Kits, along with 204 COOLS B-Kits and 22 COOLS Ballistic Protection System Kits, by Nov. 29, 2019.
  • Separately, the Bell-Boeing Joint Project Office, a joint venture between Boeing and Textron that builds V-22 Osprey tiltrotor aircraft, was awarded $69.6 million cost-plus-fixed-fee delivery order to perform non-recurring engineering work on an Improved Inlet Solution, or IIS, for U.S. Air Force and Navy Ospreys. Specifically, Bell-Boeing will perform design reviews, install an IIS retrofit kit aboard an Air Force CV-22 Osprey, and install certain other instrumentation as needed. This contract will run through December 2018.

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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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