Pentagon Awards $1.12 Billion in Defense Contracts Monday

The Department of Defense announced 13 new defense contracts worth a combined $1.12 billion Monday. Among the publicly traded companies winning contracts:

  • Northrop Grumman won a $7.6 million cost-plus-fixed-fee term-type contract for software development and maintenance work for JPEO-Chem-Bio Defense, Joint Program Manager, Information Systems, Joint Warning and Reporting Network, or JWARN. Northrop will support the modernization of JWARN, carry forward existing functionalities, and also develop new capabilities to provide joint automated chemical, biological, radiological and nuclear warning and reporting capability across the armed services. This contract will run through at least December 2014. However, it contains options that, if exercised, could extend its duration through December 2018, and raise its total value to nearly $31.5 million.
  • Abbott Labs subsidiary AMO Sales and Services was awarded a third (of five possible) one-year option periods on a five-year base contract to supply up to $27.9 million worth of medical equipment and spare parts to U.S. Army, Navy, Air Force, and Marine Corps buyers, and to federal civilian agencies as well. This contract will run through at least Dec. 19, 2014.
  • Finally, defense contractor Raytheon won a pair of contracts:
    • $42.6 million: the maximum value of a sole-source, firm-fixed-price contract to supply airborne low-frequency sonar helicopter dipping sonar systems to the Royal Australian Navy. Delivery is due February 2017.
    • $15 million: a contract modification to supply 216 Excalibur 155mm artillery rounds and 14 palletized containers to the U.S. Army. Delivery of these munitions is expected by Feb. 28, 2015.

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