The Department of Defense issued 14 separate contract awards to defense contractors Friday. Of these, the largest was "an indefinite-delivery/indefinite-quantity, multiple award contract with provisions to issue cost-plus-award-fee or firm-fixed-price task orders for global contingency construction projects worldwide." (Say that three times fast)
This umbrella contract authorizes four separate contractors -- privately held CH2M Hill Constructors and Environmental Chemical Corp, and publicly traded KBR (NYSE:KBR) and URS (UNKNOWN:URS.DL) -- to bid for individual task orders under it. In total, across the contract's one-year "base period" and the up to four subsequent one-year optional extensions, this contract is estimated to have a maximum dollar value of $800 million. It is not to exceed 60 months in duration and so should expire in June 2018.
DoD says that "approximately 60 percent" of the funds will be spent on responding to natural disasters, with the remaining and 40% of funds going to "miscellaneous work both inside and outside of the continental United States."
Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. 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.