The U.S. Department of Defense yesterday awarded nearly as many contracts Tuesday as it had in the three previous working days altogether. In total, the Pentagon awarded 17 contracts Tuesday, valued at up to $1.3 billion in combined dollar value.
The biggest of these contracts, a sizable $179.9 million, one-year award with the potential to swell to $899.5 million if the four "option-year" extensions are exercised, is to be split among 13 separate firms:
- Booz Allen Hamilton (NYSE:BAH)
- CACI (NYSE:CACI) Technologies
- Computer Sciences Corp (NYSE:CSC)
- General Dynamics (NYSE:GD) One Source
- Honeywell (NYSE:HON) Technology Solutions
- Engility Corp.
- Lockheed Martin
- Science Applications International Corp.
- URS Federal Services
- and four privately held firms.
Under the awarded indefinite-delivery/indefinite-quantity (IDIQ), cost-plus-fixed-fee, performance-based umbrella contract, all 13 firms will be able to compete to perform task orders for the U.S. Navy, providing "integrated cyber operations services" to Space and Naval Warfare Systems Center Atlantic.
Issued for an initial one-year base term, the contract could terminate as early as July 2014. If all four option years are exercised, however, the contract would stretch out as far as July 2018, and the ceiling value on all task orders issued under the contract would rise as high as $899.5 million.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics and 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.