Pentagon Awards $615 Million in Contracts
Starting the week off at a modest pace, the U.S. Department of Defense announced 11 contract awards on Monday worth about $614.7 million in total value. The bulk of the funds on offer, however, went to a single contract winner -- privately held Certified Stainless Service, which was awarded $382.5 million to supply U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies with commercial firefighting equipment. As for the rest of the funds awarded:
Lockheed Martin won an $18.2 million contract modification to perform modernization on Aegis Combat System-equipped guided missile cruisers and destroyers. This contract should be completed by August 2014.
Dentsply International won a $13.5 million option-year exercise extending a contract to supply various medical and surgical products -- also to U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies. This contract runs through August 20, 2014. However, there are an additional six potential option-year extensions that may yet be invoked. If exercised, these could extend Dentsply's contract through August 2020.
International Business Machines was awarded an $11.9 million fixed-price-incentive-firm contract to integrate Air Force military personnel and pay processes into one system under the USAF's Air Force Integrated Personnel and Pay System (AF-IPPS) Program. Work on this contract should be complete by December 2014.
Textron's AAI subsidiary won a firm-fixed-price, no option, non-multiyear contract modification worth $11.8 million, funding the purchase of six Shadow unmanned aircraft vehicles and auxiliary equipment for the U.S. Army. This win brings the value of Textron's underlying contract to approximately $1.53 billion in total.
And finally, L3 Communications was awarded a firm-fixed-price, option-eligible, non-multiyear contract modification worth $11.4 million, to supply the Army with 118 Level 2 Manned-Unmanned (L2 MUM) Product Improvement Plan B-Kits, 16 Transit cases #1, and 16 Transit Cases #2. This equipment is used to enable manned combat aircraft to communicate with and control unmanned aerial vehicles.
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Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of International Business Machines, L-3 Communications Holdings, Lockheed Martin, and Textron. 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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