Pentagon Extends Hologic Contract Worth $94 Million

Defense Department will order more radiology equipment from the Bedford manufacturer.

By Rich Smith – Apr 3, 2013 at 11:47PM EST

Bedford, Mass.-based Hologic (HOLX +0.00%) won a $94.2 million fixed-price with economic-price-adjustment contract from the Department of Defense on Wednesday.

The award, which "modifies" a pre-existing contract by exercising the fourth of seven one-year-long option years attached to the base period for performance, calls on Hologic to supply the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies with an unspecified number of radiology systems, subsystems, and components.

Hologic will supply the ordered items by the April 6, 2014, performance completion date. After that, the Pentagon will have the option of extending the contract further -- presumably through sometime in April 2017, in further one-year increments.

Rich Smith is a contributing Motley Fool defense and stock market analyst covering publicly traded and emerging companies in defense, space, aerospace, and other sectors. Prior to The Motley Fool, Rich practiced international corporate law for Clifford Chance in Russia, and for the Russian-Ukrainian Legal Group in Moscow, Kyiv, and Washington, D.C. He holds a bachelor’s degree in international relations from the College of William & Mary, a law degree from the University of Baltimore, and a language certification from the International Institute of Russian Language & Culture in Tver, Russian Federation. The Globe and Mail once featured him as “one of the best stock pickers since 2009.”

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Pentagon Extends Hologic Contract Worth $94 Million

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