The Department of Defense announced 24 new defense contracts Monday, with a combined value of $1.66 billion. The biggest of these awards, by a large margin, was the $724 million contract modification that United Technologies (NYSE:UTX) subsidiary Sikorsky Aircraft Corp just landed.
Accounting for nearly 44% of all funds on offer Monday, Sikorsky's contract hires the company to supply the DoD with 33 UH-60M Black Hawk transport helicopters and 24 HH-60M combat search-and-rescue helicopters, plus associated program management, systems engineering, provisioning, and logistics services. These funds cover planned purchases of third lot-year helicopters under the underlying contract, and also contribute funds in advance for lot-years four and five (which may be applied to termination fees if those outlying years' helicopters are ultimately not bought).
Delivery of this year's lot of helos is due by June 30, 2015.
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