Army Lifts Ceiling on Harris Contract to $500 Million

Melbourne, Fla.-based defense contractor Harris Corporation got another boost from the Pentagon Monday, announcing that it has received an increase in the ceiling value of the 2011 Indefinite Delivery, Indefinite Quantity (IDIQ) supply contract it won to supply U.S.-allied governments with radios, accessories, systems, and related service. The new contract ceiling value is $500 million.

This contract authorizes sales of military and land mobile radio systems to unspecified "international partners of the U.S. State Department and U.S. Department of Defense," and is part of the U.S. government's Foreign Military Sales program, through which the U.S. government acts as intermediary in supplying allied governments with U.S. defense hardware.

Good news nothwithstanding, Harris shares declined 0.1% in Monday trading, closing at $44.30.

The article Army Lifts Ceiling on Harris Contract to $500 Million originally appeared on Fool.com.

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