The contracts, valued at a $99.5 million ceiling price each ($298.5 million in total), break down as follows:
- An indefinite-delivery/indefinite quantity (IDIQ) contract to develop approximately 3,500 hours of instructor-led and instructor-facilitated self-paced courseware in support of the Littoral Combat Ship USS Freedom. Also known as LCS-1, Freedom is the first LCS class vessel ever built for the Navy, and it was constructed by Lockheed Martin (NYSE:LMT).
- An analogous IDIQ contract to develop 3,500 hours of courseware for the Littoral Combat Ship USS Independence. Also known as LCS-2, Independence is the second LCS variant, and the one built by Lockheed rival General Dynamics (NYSE:GD).
Both of these contracts have an estimated completion date of January 2018. Separate courseware is needed for the two vessels because they were built according to different, competing designs (one proffered by LockMart, and the other by GD).
Cubic also won a third contract. Also an IDIQ, this contract hires Cubic to develop 3,500 hours' worth of mission packages courseware, dubbed "Immersive Virtual Ship Environment-Interactive Multimedia Instruction."
Like the others, this third contract has a January 2018 completion date.
Shares of Cubic closed Friday up 0.7% at $47.68, ahead of DoD's announcements.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Cubic and owns shares of General Dynamics and Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.