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Pentagon Awards Defense Contracts to Lockheed Martin, BAE, Rolls-Royce

By Rich Smith – Mar 28, 2014 at 9:38AM

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Total value of these contracts exceeds $340 million.

The Department of Defense awarded 19 separate defense contracts Thursday, worth $6.64 billion in total.

Lockheed Martin (LMT 1.42%) won two of them:

  • a $145.9 million contract modification to supply the U.S. Army with 13 AN/TPQ-53 counterfire target acquisition radar systems, plus 13 sets of on-board spares. Delivery of these radar systems is due Nov. 30, 2016.
  • a $52.1 million contract modification instructing Lockheed to execute phase 3 of the U.S. Navy's Joint Strike Fighter Autonomics Logistics Information System (ALIS) Standard Operating Unit Version 2 (SOUv2) capability development effort. Phase 3 includes integration of the SOUv2 with the ALIS sustainment system and the F-35 air system. This contract is expected to be complete in August 2015.

Additionally, the Pentagon awarded contracts to two British defense contractors:

  • Rolls-Royce Corp (RYCEY -1.14%) (RR -2.58%) won a $107 million undefinitized contract action under which it will, for a final price to be determined later, provide maintenance and logistics support on approximately 223 in-service F405-RR-401 Adour engines that power Navy T-45 Goshawk jet trainer aircraft through March 2015.
  • BAE Systems (BAES.Y -0.02%) (LSE: BA) won a $37.4 million firm-fixed-price contract to supply the U.S. Navy with 1,372 Advanced Precision Kill Weapon Systems (APKWS) II WGU-59/B Guidance Sections, along with Navy shipping and storage containers, and supporting documentation. APKWS is a guidance unit that, when attached to a standard 70 mm Hydra rocket, transforms the weapon into a laser-guided precision munition. Delivery is due September 2015.


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