Editor's note: A previous version of this story included text and an image that incorrectly described the AN/BVY-1 Integrated Submarine Imaging System. The Fool regrets the error.
The U.S. Department of Defense awarded a total of only eight contracts Tuesday, worth $760 million in total. Textron was the big winner today on dollar value, winning a $641 million contract for the production of cluster bomb munitions. In terms of total contracts won, however, the clear winner was Lockheed Martin (NYSE:LMT), which picked up two contracts, and most of a third.
Lockheed's biggest contract win, and the second biggest contract awarded Tuesday, was a $37.3 million contract modification to add funds to a previously awarded contract funding engineering work on the Aegis air-defense platform. Lockheed will be working on this contract through September 2014.
A smaller award, for $10.1 million, funds the purchase of a single AN/BVY-1 Integrated Submarine Imaging System (ISIS) plus associated spare parts, for the U.S. Navy. ISIS is a visual and digital imaging system that is integrated into submarine periscopes.
Lockheed's final contract victory comes in the form of a firm-fixed-price, no-option, foreign military sales contract modification awarded to the company's Hellfire Systems LLC subsidiary -- now wholly owned by Lockheed Martin. The award calls on Hellfire LLC to produce Hellfire II air-to-ground missiles for the United Arab Emirates. Valued at $8.2 million, Lockheed should collect most, but not all, of the funds allotted. Part of the income from Hellfire missile sales goes to Lockheed's former partner in Hellfire LLC, Boeing, which at last report was still receiving residual "fee-per-missile" payments for missiles sold by the LLC.
In total, the Hellfire contract has now risen past $886 million as a result of today's contract modification.
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.