Pentagon Awards $1.02 Billion in Defense Contracts
The Department of Defense awarded nine defense contracts in its Monday evening announcement of contract awards. The total value of contracts awarded was $1.02 billion, but the vast majority of the funds awarded -- 81% -- went to a single, privately held fuel distributor to secure fuel supplies for the Department of Homeland Security's Federal Emergency Management Agency.
Among publicly traded defense companies, only three won contracts:
- Alliant Techsystems -- soon to become Orbital ATK -- was awarded a modification of a formerly firm-fixed-price undefinitized (i.e., no final price set) contract worth up to $15.2 million. Alliant will now continue providing logistic support services for Iraqi Air Force Cessna 208 intelligence, surveillance, and reconnaissance aircraft, and also for Cessna 208 Armed Caravans through Dec. 31. Alliant will also train students in the maintenance of both types of aircraft.
- Lockheed Martin won a $10.3 million cost-plus-fixed-fee, partial-foreign military sales contract to act as MK 41 Vertical Launching System, or VLS, electrical design agent, and to provide the U.S. Navy with technical and engineering services related to the system. The MK 41 VLS is a missile launch system used aboard CG 47-class guided missile cruisers and DDG 51-class guided missile destroyers, and is also used in ground-based ballistic missile defense. Lockheed will perform these services for the U.S. Navy and for the Japanese military through September.
- Britain's Rolls-Royce was awarded an $8 million contract modification to provide Mission CareTM support for CV-22 AE1107C engines that power Navy Osprey tiltrotor aircraft, including through performing lower power engine removals. Work on this contract will continue through February 2015.
The article Pentagon Awards $1.02 Billion in Defense Contracts originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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