Pentagon Awards $521 Million in Contracts Friday
The Department of Defense issued 12 new contracts Friday, worth a combined $521.1 million. Most of the money went to privately held firms today, some manufacturing uniforms for servicemen and women, and others to pay for construction and dredging work. But a few awards to publicly traded companies do stand out:
- The biggest contract let out to a traditional "defense contractor" was the $94.3 million awarded to Britain's BAE Systems to fund the purchase of advanced radar warning receiver ship sets and line replaceable units for the U.S. Air Force -- and potentially for the militaries of Australia, Canada, Egypt, Korea, Norway, and Poland, as well. BAE will be working on this contract through December 5, 2018.
- Radiological medical equipment maker Hologic won a $32.3-million contract modification exercising an option to have it produce ThinPrep Pap test kits and related supplies for the U.S. Army, Navy, Air Force, and Marine Corps. This contract has a Sept. 30, 2014 completion date.
- A second medical contract went to Quest Diagnostics , hiring it to perform $18 million worth of laboratory testing for servicemen and women, and for their dependents.
- Northrop Grumman won a $10-million contract modification to perform additional work in support of the Broad Area Maritime Surveillance-Demonstrator, Unmanned Aircraft System, also known as the Global Hawk Maritime-Demonstrator. The Pentagon notes that it is increasing the "operational tempo" of test flights on the BAMS-D, running 15 missions per month -- a 67% increase from previous expectations of flying nine missions per month. This contract now runs through May 2014.
The article Pentagon Awards $521 Million in Contracts Friday originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Quest Diagnostics. The Motley Fool owns shares of Northrop Grumman. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.