On a slow day for defense contractors, a subsidiary of Warren Buffett's Berkshire Hathaway (NYSE:BRK-A) took home the Pentagon gold Wednesday.
After bidding for the rights to develop and manufacture an aircrew training system for the new KC-46 Boeing aerial refueling tanker, Berkshire subsidiary FlightSafety International won a $78.4 million contract to produce the system. FlightSafety could have as long as until 2026 to complete work on the contract if all option-year extensions are exercised.
Berkshire's single contract win accounted for more than half the $149.4 million in contracts awarded Wednesday. Of the rest, only one went to another publicly traded company. General Dynamics' (NYSE:GD) Advanced Information Systems subsidiary won $31.5 million in the form of a five-year performance-based logistics requirements contract to support six mission computers used on F/A 18 E/F, EA-18G, and AV-8B aircraft. The completion date on this contract is April 2018.