Defense contractor Exelis (NYSE:XLS) landed a sizable Pentagon contract Thursday. The award, for $125.7 million, came in the form of an option-exercise extending a previously awarded firm-fixed-price production contract to supply the U.S. Navy with 62 AN/ALQ-214(V)4 On-Board Jammer Systems as part of Full Rate Production Lot 10.
Exelis describes the ALQ-214 as a "next generation integrated countermeasures system" installed in U.S. Navy F/A-18 carrier-based aircraft, and also in F/A-18s operated by the Royal Australian Air Force. The system uses receivers and active countermeasures to form an "electronic shield" protecting the F/A-18 from hostile fire, and attempting to confuse also hostile radar signals to defeat detection.
Exelis will be delivering the instant order of jamming systems for installation aboard U.S. Navy F/A-18s. A November 2015 delivery date is anticipated.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.