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IT Companies Win $6.9 Billion of $7.4 Billion in New Pentagon Contracts

By Rich Smith - Apr 20, 2013 at 1:10PM

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General Dynamics and URS are among a field of eight winners.

The Department of Defense closed out last week with a massive $7.4 billion in new contract awards Friday. Nineteen separate companies shared in the Pentagon largesse, but one single set of companies took home the bulk of the winnings -- more than 93%.

On Friday, the Pentagon awarded a series of eight companies a massive $6.9 billion-maximum value, firm-fixed-price, multiple-award, indefinite-delivery/indefinite-quantity (ID/IQ) contract for the supply of information technology products and services. The award fell under the umbrella Network Centric Solutions, or NETCENTS-2, program, and was issued to the following companies:

  • Publicly traded General Dynamics' (NYSE: GD) Information Systems and Technology division.
  • Iron Bow Technologies LLC.

These privately held names also took part in the spoils:

  • Ace Technology Partners.
  • CDW Government.
  • CounterTrade Products.
  • FedStore.
  • Intelligent Decisions.
  • World Wide Technology.

The NETCENTS-2 program funds the purchase of off-the-shelf commercial products such as networking equipment, servers/storage, multimedia, and software for the U.S. Air Force's Internet Protocol Network.

Each participant in this contact will receive an initial $2,500 award, followed by additional, larger awards to be won in competition with each other as the contract proceeds. The contract duration is structured with an initial three-year base period, potentially followed by up to three successive one-year "option" periods -- six years in total.

Editor's note: A previous version of this article incorrectly characterized Iron Bow Technologies as a subsidiary. 

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