Pentagon Awards More Than $102 Million in Contracts

Rich Smith, The Motley Fool
Updated

On Monday, the Department of Defense announced a number of smallish (in defense industry terms) contracts awarded to several companies. Among these:

  • The smallest of the day's awards went to Raytheon , which won a $6.6 million modification to a previously awarded Foreign Military Sales contract. Raytheon will supply four torpedo tube launched (TTL) Tomahawk Block IV cruise missiles to the U.K. military. The DOD announcement clarifies that there are variants of the Tomahawk Block IV: missiles launched from a surface ship equipped with a vertical launch system (VLS), those launched from a submarine equipped with a capsule launch system (CLS), and those launched from a submarine equipped with a TTL launch system. Delivery is scheduled for February 2015.

  • Northrop Grumman won a $7.1 million contract for work on the "Litening ATP-SE [Advanced Targeting Pod -- Sensor Enhancement ] Phase IV Operational Flight Program." Largely a Lockheed Martin program, other companies also work on the pod, and Northrop is one of them. This contract runs through Jan. 12, 2015.

  • Lockheed was awarded a $9 million "not to exceed delivery order" under a previously awarded basic ordering agreement "for the repair of parts for the NA/UYQ-70 advanced display and processor systems for tactical and command, control, communication, computers intelligence (C4I)." Due date: March 2014.

  • Remington Arms, a subsidiary of the gunsmiths-holding company Freedom Group, itself (for now) a subsidiary of private equity powerhouse Cerberus Capital, got the biggest award on Monday's list: a 10-year (starting from March 7, 2013) contract to supply up to 5,150 precision sniper rifle (PSR) systems for U.S. Special Operations forces, and 4.7 million rounds of ammunition. The estimated contract value is $79.7 million.

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Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin, Northrop Grumman, and Raytheon Company. 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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