Pentagon Awards $7.42 Billion in Contracts

Pentagon Awards $7.42 Billion in Contracts

The Department of Defense issued 10 new contracts on Tuesday worth a combined $7.42 billion. Notwithstanding the large headline number, one single contract for the supply of wind energy to the U.S. Army accounted for 94% of the funds on offer.

As for the remaining cash, it mostly got parceled out in smaller bundles. A few of the notable winners:

  • The Longbow joint venture between Lockheed Martin and Northrop Grumman won a $51 million firm-fixed-price, non-option eligible, non-multiyear foreign military sales contract to supply the Republic of Korea with six Longbow fire control radar systems to be installed aboard Boeing Apache attack helicopters. Last month, Boeing received official confirmation that it has won a contract to supply the Korean military with three dozen Apaches -- thus, additional Longbow purchases may be expected.

  • Speaking of Boeing, that company also won an Apache-related award. The U.S. Army issued Boeing a $14.4 million firm-fixed-price, option eligible, non-multiyear contract to sell it four Longbow crew trainers for the Apache helicopter.

  • Meanwhile, Lockheed Martin won a separate contract Monday. Worth $10.2 million, it hires Lockheed to develop, maintain, and upgrade the U.S. Navy's Visual Interactive Simulated Training Application (VISTA). VISTA is described as being "a flexible high-fidelity computer based networked system that provides a training environment for both operation and corrective maintenance tasks on selected combat systems" at the Navy's Center for Surface Combat Systems. About 75% of the value of this contract is designated as a "foreign military sale" benefiting the militaries of not the United States, but rather Japan, Norway, Pakistan, and Spain.

  • Finally, Raytheon won a $9.7 million contract modification hiring it to repair and return-to-owner damaged Patriot missile parts. This contract was a foreign military sale to: Israel, Japan, Korea, Kuwait, the Netherlands, Saudi Arabia, Taiwan, and the United Arab Emirates.

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