Pentagon Awards $127 Million in Defense Contracts

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Emerging from the Memorial Day weekend, the staff at the Department of Defense got back to work yesterday, awarding nine defense contracts in its Tuesday evening announcement of contract awards. A total of $127 million in contracts were awarded.

Micro-cap stocks claimed two of the awards, with tiny iCAD (NASDAQ: ICAD) winning an option exercise (the fourth of seven possible one-year extensions on an underlying contract) worth up to $12 million. iCAD will supply radiology systems, subsystems, and components to the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies as needed through May 26, 2015. Even smaller Digirad Corporation (NASDAQ: DRAD) won a similar option year extension (its fifth of seven possible) worth up to $10.9 million — also for radiology systems, subsystems, and components, and with a May 31, 2015, completion date.

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Among larger defense contractors:

  • Airbus‘ (NASDAQOTH: EADSY) EADS North America unit was awarded a $33.8 million contract modification adding funds to a contract for, and exercising an option on, supply of logistics support for U.S. Army UH-72A Lakota helicopters. Work on this contract will continue through June 30, 2016.
  • Textron‘s (NYSE: TXT) AAI Corporation was awarded a $7.7 million contract modification to develop, verify, and validate noise signature reduction design improvements on Limited 1102 unmanned aerial vehicle engines and Block 3 propulsion system engines. The contract modification also has AAI performing software updates and integrations of a small mission computer into RQ-7BV2 modified Shadow UAVs. This work will continue through Sept. 20, 2015.
  • Lockheed Martin (NYSE: LMT) was awarded a $7.4 million modification to a contract to generate simulation scenarios for use at the U.S. Air Force Operational Test and Evaluation Center in initial operational test and evaluation work on Block 20 Space-Based Infra-Red Systems satellites. This work is expected to be completed by Dec. 30, 2016.
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