Boeing Wins Pentagon Contracts Worth Close to $100 Million
Boeing won (pieces of) two contracts awarded by the Department of Defense Thursday, contracts that could produce close to $99.7 million in combined revenue for the company and its partners.
The larger of the two awards, won by the Boeing-Textron joint venture Bell-Boeing Joint Project Office, takes the form of a $60.2 million modification to a previously awarded contract to produce production lots 17 to 21 of the V-22 Osprey tiltrotor aircraft for the U.S. Navy. Specifically, the modification orders Boeing to deliver one extra MV-22 Osprey to the U.S. Marine Corps by November 2016, in accordance with a "Variation in Quantity" clause in the original contract.
The smaller award, worth $39.5 million to Boeing (and not shared with anyone), likewise modifies a preexisting contract. Here, Boeing is asked to supply the Air Force with 1,601 tailkits -- used to turn "dumb bombs" into smart bombs -- for affixing to Joint Direct Attack Munitions (JDAM). This modification increases the total value of Boeing's Lot 17 production of the JDAM tailkits to $141.9 million. Delivery of the additional tailkits is expected by March 31, 2015.
The article Boeing Wins Pentagon Contracts Worth Close to $100 Million originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of 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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