Pentagon Awards $583 Million in Defense Contracts Wednesday

The Department of Defense announced 10 new defense contracts, worth $583.1 million in aggregate, Wednesday. The bulk of these funds -- $391 million and change -- went to DRS-Sustainment Systems, a subsidiary of Italian defense contractor Finmeccanica , which received a hybrid firm-fixed-price, fixed-price-incentive-firm-target, cost-reimbursable-no fee (travel only), requirements-type "D" contract to provide services in support of 318 U.S. Air Force Tunner aircraft cargo loading systems at more than 80 worldwide locations.

This contract will run through July 31, 2024. As for the other contracts awarded, they were both shorter in duration and smaller in size. They included:

  • $7.3 million, awarded to defense contractor Huntington Ingalls as a contract modification to provide additional planning and design yard functions for Navy nuclear-powered submarines. This contract will now continue through September 2014.
  • $8.9 million, awarded to Northrop Grumman as a new indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee, performance based contract (with provisions for firm-fixed-price orders), hiring Northrop to provide engineering and technical services in support of U.S. Navy AN/WSN-7/7A Ring Laser Gyro Navigation (RLGN) systems, AN/WSN-7B Ring Laser Gyrocompasses (RLGN), Integrated Bridge System (IBS)/Voice Management Systems, and Navigation and Search Radar Systems. This contract is expected to conclude in October 2014, but includes options, which, if exercised, could ultimately raise the value of the contract past $27.5 million and extend its duration into October 2016.
  • $74.1 million, awarded to Oshkosh  in the form of a contract modification authorizing the purchase of an additional 246 medium tactical vehicles (FMTV), to be delivered by Dec. 31, 2014.
  • And finally, $28 million, via two separate contracts awarded to General Electric . GE's larger contract, worth up to $20 million, hires the firm to perform R&D work pertaining to the development and implementation of "condition-based maintenance plus structural integrity" reports to improve estimates of the lifespan of U.S. Air Force legacy aircraft. The smaller contract, worth $8 million, is actually a modification of a previously awarded firm-fixed-price contract funding the purchase of long-lead materials needed to build F414-GE-400 engines to power Navy F/A-18E/F/G fighter jets. This latter contract should be completed in October 2015.

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