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Pentagon Awards Defense Contracts to Raytheon, ATK

By Rich Smith – Feb 24, 2014 at 9:47PM

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Raytheon providing primarily spare parts, while ATK supplies the Army with mortar rounds.

The Department of Defense awarded 14 separate defense contracts Monday, worth a total of $281.8 million. Raytheon (RTN) won three of them:

  • A $20 million sole-source, indefinite-delivery/indefinite-quantity contract to support AMRAAM Aircraft Integration, testing, and flight test support for the U.S. Air Force. Among other things, Raytheon will be troubleshooting problems with use of the Advanced Medium-Range Air-to-Air Missile aboard Air Force fighter jets as they arise between now and September 2019.
  • A $14.3 million firm-fixed-price delivery order to supply repair parts needed for U.S. Navy Sikorsky H-53 helicopters and V-22 Osprey aircraft through Feb. 28, 2016.
  • A $9.4 million ceiling-priced delivery order to repair one weapon-repairable assembly and four shop-replaceable assemblies for Advanced Targeting Forward-Looking Infrared systems installed aboard U.S. Navy F/A-18 fighter aircraft. Delivery is due by February 2016.

And defense contractor ATK (NYSE: ATK) won two more:

  • An $8 million contract modification to supply various Common Munition Built-in-Test (BIT) Reprogramming Equipment (CMBRE) system components for use by U.S. Air Force, Navy, and foreign military customers. Delivery is due by Feb. 23, 2015. The majority of these components (80%) will go to customers in Australia, Belgium, Canada, Finland, India, Israel, Korea, the Netherlands, Oman, Poland, Singapore, and Turkey.
  • A $10.7 million firm-fixed-price contract to supply the U.S. Army with 60mm high explosive enhanced fragmentation M1061 mortar rounds by Sept. 30, 2015.

Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon Company. 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.

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