Extending the midsummer drought in defense spending into a second week, the U.S. Department of Defense awarded only four new contracts Monday, worth $80.7 million in total. Worse news for investors is that only two of them went to publicly traded companies.
The lucky winners this time:
- Exelis (UNKNOWN:XLS.DL), which won the day's biggest award, $26.7 million to support Launch and Test Range System functions for the Space and Missile Systems Center/PKL in the Eastern and Western space launch ranges, from Aug. 1 through Oct. 31.
- Bell Helicopter Textron (NYSE:TXT), which was awarded a $17.9 million firm-fixed-price, cost-plus-fixed-fee contract to support the U.S. Marine Corps' H-1 upgrade program. This is the program whereby the USMC is switching from a helicopter force composed mainly of AH-1W SuperCobras and UH-1N Twin Hueys to one featuring AH-1Z Vipers and UH-1Y Venoms.
Under the instant contract, Bell will be manufacturing, testing and delivering one each of an H-1 main rotor gearbox test stand and H-1 tail rotor/intermediate gearbox test stand, plus related equipment, and providing logistics, maintenance, and follow-on support, as well as other things needed to facilitate depot level maintenance of these H-1 aircraft rotor assemblies.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Textron. 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.