Pentagon Awards $2.96 Billion in Defense Contracts Thursday
The Department of Defense announced 21 new defense contracts worth $2.96 billion million in aggregate on Thursday. Much of the funds awarded went to small, federally defined "small businesses" involved in the sale of fire and emergency services equipment to the U.S. Army, Navy, Air Force, and Marine Corps -- but there were a few winners among larger, publicly traded firms. For example:
- Valero Energy's Marketing and Supply subsidiary won a sizable economic-price-adjustment, indefinite-delivery/indefinite-quantity, foreign military sales contract to supply the Israeli military with aviation turbine fuel. Worth up to $330.8 million in value, this one-year supply contract should be fulfilled by Nov. 30, 2014.
- A similar supply contract was awarded to Chevron . Worth a maximum of $29.8 million, this fixed-price with economic-price-adjustment, indefinite-delivery/indefinite-quantity contract is also for the supply of aviation turbine fuel, but to the U.S. Defense Logistics Agency Energy as buyer. Performance should wrap up by Dec. 31, 2013.
- Defense contractor Exelis was awarded a $23.3 million contract modification to extend Launch and Test Range System support functions in the Eastern and Western (space launch) Range by three months, i.e., through Jan. 31, 2014.
- Honeywell International won a $19.1 million fixed-price with economic-price-adjustment contract to provide technical, engineering, and logistical support services, plus materials necessary to overhaul and repair T-55 helicopter engines at the Corpus Christi Army Depot.
- Pall's Aeropower division won a $16.9 million sole-source, firm-fixed-price contract to supply the U.S. Army with particle separators by Oct. 31, 2017 .
- Navistar won a $7.3 million cost-plus-fixed-fee contract to assist with upgrades on its Mine Resistant Ambush Protected (MRAP) MaxxPro M1235A3 Dash armored vehicles.
The article Pentagon Awards $2.96 Billion in Defense Contracts Thursday originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Chevron. 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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