Berkshire Subsidiary Wins Big Pentagon Contract
On a slow day for defense contractors, a subsidiary of Warren Buffett's Berkshire Hathaway took home the Pentagon gold Wednesday.
After bidding for the rights to develop and manufacture an aircrew training system for the new KC-46 Boeing aerial refueling tanker, Berkshire subsidiary FlightSafety International won a $78.4 million contract to produce the system. FlightSafety could have as long as until 2026 to complete work on the contract if all option-year extensions are exercised.
Berkshire's single contract win accounted for more than half the $149.4 million in contracts awarded Wednesday. Of the rest, only one went to another publicly traded company. General Dynamics' Advanced Information Systems subsidiary won $31.5 million in the form of a five-year performance-based logistics requirements contract to support six mission computers used on F/A 18 E/F, EA-18G, and AV-8B aircraft. The completion date on this contract is April 2018.
The article Berkshire Subsidiary Wins Big Pentagon Contract originally appeared on Fool.com.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway and General Dynamics. 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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