The Department of Defense announced 14 new defense contracts, worth $1.38 billion in aggregate, Friday. More than half the funds on offer, however, were awarded in the form of just two very large contracts -- work on which will be divided up among a series of large government contractors.
Specifically, $497 million was awarded in the form of a cost-plus-fixed-fee contract for unspecified "technical, administrative, and operation support services" to be performed for the U.S. Army through Nov. 15, 2018. The contract recipients include BAE Systems (NASDAQOTH:BAESY), Booz Allen Hamilton, CACI Technologies, Dynamics Research, Science Applications International (NYSE:SAI), and three privately held contractors -- D & S Consultants, Scientific Research, and Systems Technologies.
Also, $220 million was awarded through a similarly vague cost-plus-fixed-fee contract for "test execution services and launch augmentation" for the Army. Here, the contract completion date is Nov. 14, 2016, with the winners being BAE Systems (again), SAIC (again), and also Exelis, Teledyne Brown Engineering, and privately held contractors Technology Solutions & Services and Dynetics
Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. 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.