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Russia Lands $572.2 Million Pentagon Contract to Boost Afghan Air Forces

By Rich Smith – Jun 18, 2013 at 10:39AM

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Department of Defense announces $1.5 billion in contracts.

The Department of Defense issued eight separate contract awards Monday, totaling just over $1.5 billion in combined value. Among traditional U.S. defense contractors, a few of the notable winners were:

  • Cubic Corporation (CUB), which won $6.6 million as a cost-plus-fixed-fee contract to conduct technology integration research for the U.S. Air Force under the U.S. Pacific Command (PACOM) through June 16, 2015.
  • Lockheed Martin (LMT 0.75%), whose Mission Systems and Training division was awarded $9.9 million for modernization work related to integrating the Aegis Combat System and MK 59 Decoy Launcher System aboard U.S. guided missile destroyers, and in particular the USS Fitzgerald (DDG 62). Lockheed is expected to complete this work by September 2013.
  • BAE Systems (BAES.Y 1.12%), whose Norfolk Ship Repair unit won $22.5 million to perform services related to "post-shakedown" work on the amphibious transport dock USS Arlington (LPD 24). BAE will be occupied with this through April 2014.
  • Raytheon (RTN), whose Missile Systems division was awarded $52.5 million in a firm-fixed-price contract to supply both AGM-65 Maverick air-to-ground missiles and TGM-65 training variants of the missile to support foreign military sales. These missiles are to be delivered to the U.S. Air Force by Nov. 30, 2015.

One of the biggest contracts awarded Monday didn't go to an American defense contractor at all. A monster $572.2 firm-fixed-price contract to supply 30 Mi-17 "Hip" helicopters to the Afghan National Securities Forces Special Mission Wing was awarded to Russia's Rosoboronexport (literally, "Russian Defense Export"). According to DoD, these transport helicopters will be used on counter-terrorism, counter-narcotics, and special operations missions. Work completion is is scheduled for Dec. 31, 2014.

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Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Cubic. The Motley Fool owns shares of Lockheed Martin and Raytheon Company. 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.

Stocks Mentioned

Lockheed Martin Stock Quote
Lockheed Martin
LMT
$484.81 (0.75%) $3.61
Raytheon Stock Quote
Raytheon
RTN
BAE Systems plc Stock Quote
BAE Systems plc
BAES.Y
$41.12 (1.12%) $0.46
Cubic Stock Quote
Cubic
CUB

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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