On Tuesday, the Department of Defense announced that it has awarded indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contracts worth a combined $397.3 million to Oceaneering International (NYSE:OII) and General Dynamics' (NYSE:GD) Electric Boat Corporation.
The contracts relate to the submarine safety program and require the companies to provide "technical management, administrative and technical services, materials, tools, equipment, facilities, and required support to accomplish installation, troubleshooting, repair, and maintenance of main and auxiliary, weapons, hull, mechanical, and electrical equipment."
Both contracts are expected to be complete by February 2018. Of the two, General Dynamics won the larger dollar value: $215.5 million. Oceaneering International's award may be more significant for investors, however. The $181.8 million contract it won amounts to about 6.5% of all the revenues it collected over the past 12 months.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Oceaneering International and owns shares of General Dynamics. 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.