Pentagon Awards $263 Million in Defense Contracts Tuesday
The Department of Defense announced 14 defense contracts Tuesday, worth $263.4 million in aggregate. Of these, both of the two largest awards went to British defense contractors:
- Rolls-Royce received a $57.1 million option exercise to maintain the AE1107C engines of U.S. Navy V-22 Osprey tiltrotor aircraft. Rolls will be repairing engine components and whole engines, as well as providing other services related to the aircraft through February 2015.
- BAE Systems was awarded a $28.2 million option exercise instructing it to supply the Navy with 262 AN/ALE-55 fiber optic towed decoys and 70 electronic frequency converters, both components of an integrated defensive electronic countermeasures suite. Delivery is expected to be completed in November 2015.
Smaller awards went to:
- Motorola Solutions , which was awarded a $17.2 million option exercise to continue maintaining enterprise land and mobile radio systems at 53 U.S. Navy military installations worldwide. Motorola Solutions will be performing preventive and corrective maintenance on the radio systems. The Pentagon notes that this option exercise will extend the underlying contract's duration through December and increase its total value to $48.4 million.
- Raytheon , which was awarded a $13.3 million option exercise to operate and maintain the U.S. Air Force's COBRA DANE radar station at Eareckson Air Station on the island of Shemya, Alaska, for the entirety of 2014. This is the third option-year extension so far on this contract, and a further extension appears likely. In announcing this option exercise, the Pentagon noted that it expects Raytheon to continue operating the radar station "24 hours per day, 365 days per year" through at least Dec. 31, 2015.
The article Pentagon Awards $263 Million in Defense Contracts Tuesday originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.