After weeks in which it seemed the Department of Defense was doing hardly any shopping at all, the Pentagon finally found its pocketbook Wednesday. Awarding 19 contracts in quick succession, the Pentagon racked up a credit card bill $3.3 billion long. But one single company won more than half the funds on offer: Boeing (NYSE:BA).
Boeing actually won two contracts Wednesday, if you count the $8.5 million firm-fixed-price delivery order taken in by its unmanned aerial vehicle-building subsidiary, Insitu, which will be performing upgrades on U.S. Navy RQ-21A "Integrator" small tactical unmanned aircraft systems.
But the really big win Boeing booked was a monster $2.04 billion contract to build P-8A Poseidon sub-hunting aircraft for the Navy. Over the course of the next three years (delivery is due April 2016), Boeing will supply the Navy with 13 low-rate initial production Lot IV aircraft, plus 13 ancillary mission equipment kits to outfit them.
On a side note, the Pentagon said that it's including in the value of this Lot IV contract award, funds needed to purchase "one lot of diminishing manufacturing sources and long-lead parts" needed for the manufacture of a previously ordered set of P-8As -- the batch of 16 planes ordered under production Lot I.