The Department of Defense awarded 11 defense contracts Thursday, worth $1.64 billion altogether. More than half the funds on offer, however, went to seven companies chosen to participate in a major Pentagon training project.
The contract in question, worth an estimated $876.9 million over the next five years, takes the form of cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity awards to:
- Booz Allen Hamilton (NYSE:BAH)
- General Dynamics (NYSE:GD)
- Lockheed Martin (NYSE:LMT)
- Northrop Grumman (NYSE:NOC)
- Science Applications International Corp (NYSE:SAIC)
- and two other privately held firms.
These seven firms will bid against each other to win various task orders over the next five years to perform work under the Pentagon's Joint Force Development program, which aims to "advance the operational effectiveness of the current and future joint force." Tasks will involve providing continuously adaptive support for training and real-world operations through "education (academics), training assessment, experimentation (warfighting solutions), and infrastructure." This contract is expected to run through April 30, 2019.
Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics, Lockheed Martin, and Northrop Grumman. 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.