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Pentagon Awards $648 Million in Defense Contracts Wednesday

By Rich Smith - Jul 17, 2014 at 10:31AM

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Sparton Corp, General Dynamics, Northrop Grumman, and URS all win work.

The Department of Defense awarded only nine defense contracts in its Wednesday evening announcement of contract awards, released after stock markets closed for the day. The total value of contracts awarded was $648.3 million.

Among the publicly traded defense contractors winning awards:

  • The Sparton Corp. (NYSE: SPA)/Undersea Sensor Systems joint venture, ERAPSCO, won a $166 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract to supply the U.S. Navy with 141,263 AN/SSQ Series sonobuoys and 5,000 MK-84 Signal Underwater Sound devices, both used to detect underwater submarines, between now and October 2019.
  • General Dynamics ( GD 1.62% ) was awarded a $65.2 million foreign military sales contract modification to provide additional training, logistics support, and maintenance services to the Iraqi M1A1 Abrams Program through Feb. 28, 2015. General Dynamics is the manufacturer of the Abrams main battle tank.
  • Northrop Grumman ( NOC 1.50% ) was awarded a $17 million contract modification to correct "deficiencies" in radar software used by its Global Hawk Block 40 UAVs. Work under this contract will now continue through Sept. 30, 2015.
  • URS Corporation (NYSE: URS), soon to be acquired by AECOM ( ACM -0.63% ), won an $8 million firm-fixed-price indefinite-delivery contract to perform architectural and engineering services for the Mobile District and South Atlantic Division of the U.S. Army Corps of Engineers through July 15, 2019.

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Stocks Mentioned

General Dynamics Corporation Stock Quote
General Dynamics Corporation
GD
$197.63 (1.62%) $3.15
AECOM Stock Quote
AECOM
ACM
$69.67 (-0.63%) $0.44
Northrop Grumman Corporation Stock Quote
Northrop Grumman Corporation
NOC
$357.84 (1.50%) $5.27

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

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