Pentagon Announces $730 Million in New Contracts Wednesday
The U.S. Department of Defense awarded 13 new contracts Wednesday, worth more than $730 million in aggregate. Thelargest of these awards, a $230 million contract to upgrade the U.S. Air Force's Digital Video Laboratory III, went to privately owned SRI International of Menlo Park, Calif. But publicly traded companies weren't entirely left out in the cold.
- Johnson Controls' Federal Systems unit, along with six private companies, all claimed the right to participate in a firm-fixed-price, option-filled, multiple-award, task-order contract worth up to $95 million. Under this contract, the seven winners will compete to complete task orders for providing "construction and equipment installation services" worldwide for the U.S. Army Corps of Engineers.
- Verizon Business Network Services won an $11.9 million modification of a contract to supply "managed network services" to the U.S. Army.
- And Northrop Grumman won a $10.4 million contract modification to support unspecified "critical components" for U.S. and Coalition Partners in Afghanistan. The Pentagon noted in its announcement that the cumulative value of this latter contract is now approaching $198 million.
Editor's note: A previous version of this article incorrectly mentioned Smith & Wesson Holding Corp. (NASDAQ: SWHC) as securing a contract. That is not the case. The Fool regrets the error.
The article Pentagon Announces $730 Million in New Contracts Wednesday originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Northrop Grumman. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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