Please ensure Javascript is enabled for purposes of website accessibility

Pentagon Awards $96 Million in New Defense Contracts Thursday

By Rich Smith - Feb 20, 2014 at 6:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A further $7 billion in funds is up for grabs from pre-existing contracts.

The Department of Defense awarded seven defense contracts Thursday, worth a total of at least $96.2 million -- and potentially a whole lot more -- to the companies receiving contracts.

The big news of the day was of a significant expansion in the number of companies now permitted to bid on the Pentagon's $7 billion "green energy" project, which received so much attention last summer. Several new companies have now been added to the list of firms able to bid to sell the Pentagon power.

But a couple of more traditional "defense contractors" won awards, as well, namely:

  • Engility (EGL) won a $24.9 million cost-plus-fixed-fee, indefinite-delivery/indefinite quantity, multiple-award contract to provide engineering and technical support to the U.S. Navy's Indian Head Explosive Ordnance Disposal Technology Division. Engility's efforts will include work on ways to defeat improvised explosive devices. Work on this contract is expected to be complete by February 2017.
  • Lockheed Martin (LMT -0.60%) was awarded a $9.5 million contract modification related to Lot VI of the F-35 Lightning II stealth fighters that it is current producing under a "Low Rate Initial Production" regime. These funds will be used to do "Netherlands-specific" work on planes destined to be sold to the Dutch military, including by funding the procurement of Autonomic Logistics Information Systems equipment. This contract will wrap up in April 2015.

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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Lockheed Martin Corporation Stock Quote
Lockheed Martin Corporation
$423.86 (-0.60%) $-2.55
Engility Holdings, Inc. Stock Quote
Engility Holdings, Inc.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/09/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.