Pentagon Awards $387 Million in Defense Contracts
The Department of Defense awarded only six defense contracts in its Wednesday evening announcement of contract awards. The total value of contracts awarded was $386.6 million.
Lockheed Martin won by far the largest award, amounting to more than half the funds on offer, in the form of a $222.9 million modification to its C-5 Reliability Enhancement and Re-engining Program (RERP) contract with the U.S. Air Force. Under this contract, Lockheed is installing GE engines and 69 separate aircraft enhancements to improve the reliability, maintainability, and availability of 11 C-5M aircraft so that they can continue flying through 2040. Work under this contract should be complete by Jan. 10, 2017.
As for the other publicly traded companies winning contracts:
- Britain's Meggitt PLC won the day's second largest award, a $99 million contract to supply the U.S. Army with next generation Engagement Skills Trainer II (EST II) simulators for marksmanship and squad collective training. Delivery is due June 17, 2019.
- General Dynamics subsidiary Earl Industries LLC won a $19.8 million contract to perform maintenance and upgrades work on the Cyclone-class Patrol Coastal vessel USS Tornado (PC 14) while it is in drydock in Florida through August 2015.
The article Pentagon Awards $387 Million in Defense Contracts originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics and Lockheed Martin. 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.
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