Lockheed's $7 Million DoD Contract Could Be Worth ... $304 Million
The Department of Defense issued a total of 22 contracts Thursday. With an aggregate value of less than $500 million, these were, for the most part, small awards dealing with logistics and supply. However, there were a small handful of noteworthy announcements for publicly traded companies:
- BAE Systems / Rockwell Collins joint venture Data Link Solutions, for example, was awarded $38.2 million in a firm-fixed-price, requirements contract to perform repairs on Multifunctional Information Distribution System (MIDS) units for the 402nd Maintenance Wing (MXW) at Warner-Robins Air Logistics Center. This contract runs through June 20, 2019.
- Alliant Techsystems won a $20 million contract modification funding the purchase of "various AN/AAR-47 Missile Warning System Weapons Replaceable Assemblies" for the U. S. Navy and Air Force. The DoD contract announcement noted that these systems will primarily be installed on U. S. Navy, Marine Corps, and Air Force helicopters, rotorcraft and low/slow flying, fixed wing aircraft; however, a small number of the parts (less than 4%) are destined for the Danish military. December 2015 is the estimated completion date.
- FLIR Systems won a $14.4 million modification to a previously awarded firm-fixed-price, multi-year contract to supply and maintain sensor components on Legacy Rapid Aerostat Initial Deployment Base, Expeditionary Targeting and Surveillance Systems. These are airborne, blimp-based sensor arrays used to provide early warning of hostile activity around U.S. forward operating bases in Afghanistan.
- Finally, Lockheed Martin's Mission Systems and Training unit was awarded a $6.9 million cost-plus-incentive-fee, cost-plus-fixed-fee contract to perform additional Aegis development work for the U.S. Navy. Now, $6.9 million may not sound like much, but ... according to DoD, Thursday's award contains optional extensions to it, which, if exercised, could increase the total value of this contract to $304.4 million.
The article Lockheed's $7 Million DoD Contract Could Be Worth ... $304 Million originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. 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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