Pentagon Awards $10.33 Billion in Defense Contracts Friday
The Department of Defense awarded 12 separate defense contracts Friday, worth $10.33 billion in total. The vast majority of these funds, however, were awarded in just a single award -- a monster $10 billion firm-fixed-price, indefinite-delivery/indefinite-quantity contract for "support of special operational equipment tailored logistics support program."
Only five privately held firms will participate in this two-year contract (extendable up to five years). No publicly traded firms at all were chosen to participate -- but publicly traded firms did still win a few of the day's smaller contracts, among them:
- A $76.1 million contract modification awarded to the Bell-Boeing Joint Project Office, a joint venture between Textron and Boeing , which instructs the JPO to delivery one single additional CV-22 tiltrotor aircraft to the U.S. Air Force by December 2016.
- A $39.4 million fixed-price with economic-price-adjustment contract for Sysco to provide "prime vendor food and beverage support" to the U.S. Army, Navy, Air Force, and Job Corps in Florida through April 16, 2019.
- A $32.3 million option exercise for NuStar Energy L.P. subsidiary Shore Terminals LLC to provide "petroleum storage services" to the U.S. Army, Air Force, and Marine Corps through Nov. 30, 2016.
- A $7.7 million undefinitized contract modification compensating Lockheed Martin for "non-recurring sustainment activities" performed on behalf of the government of the United Kingdom, related to the latter's purchase of F-35 Lightning II stealth fighter jets. This contract has a completion date of June 2014.
The article Pentagon Awards $10.33 Billion in Defense Contracts Friday originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Sysco. The Motley Fool owns shares of Lockheed Martin and Textron. 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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