On Monday, the Department of Defense awarded 19 contracts, which added up to just under $1.5 billion in total value. The largest award actually went to a private company to pay for "full line food distribution" in Okinawa. But the second-largest contract went to Lockheed Martin (NYSE:LMT).
Lockheed's win, a sole-source, cost-plus-incentive-fee/cost-plus-award-fee/cost-plus-technical-schedule incentive fee contract modification, is worth $295 million to Lockheed's Mission Systems and Training division. That's a fair amount of revenue, but seeing as MST is Lockheed's second least profitable unit (after Information Systems & Global Solutions ), it's not as good news for Lockheed investors as it might have been.
Under the contract, Lockheed will continue to develop the Aegis Ballistic Missile Defense Baseline, working to move the 5.1 variant of the system through Critical Design Review, and moving Increment-2 through Preliminary Design Review. Work on these efforts will continue through March 30, 2015.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. 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.