Aerospace & Defense

Pentagon Awards $340 Million in Defense Contracts

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The Department of Defense awarded nine defense contracts in its Tuesday evening announcement of contract awards. The total value of contracts awarded was $340 million.

Among the publicly traded companies winning contracts:

  • United Technologies’ (NYSE: UTX) Sikorsky Aircraft Corp. subsidiary was awarded a $143.4 million contract modification to deliver to the U.S. Army 13 UH-60M Black Hawk helicopters by Sept. 30, 2015.
  • VIASAT (NASDAQ: VSAT) won a $30.6 million firm-fixed-price, multi-year contract to supply the U.S. Army with Enhanced Bandwidth Efficient Modems, and to provide hardware and software support, repairs, maintenance, and upgrades post-production. No specific deadline for performance was given.
  • Boeing (NYSE: BA) was awarded a $27.7 million option exercise on a contract for QF-16 Full-Scale Aerial Target, or FSAT, Lot 2 production, bringing the total cumulative face value of the underlying contract to $158.6 million. This option funds the U.S. Air Force’s purchase from Boeing of 23 QF-16 FSATs (modified versions of old F-16 fighter jets, which have been converted into target drones to be shot at during target practice), plus the taking out of 23 four-year warranties on the QF-16s’ Drone-Peculiar Equipment. Delivery of the target drones is due May 20, 2016; their warranty period will run through May 20, 2020.
  • Lockheed Martin (NYSE: LMT) was awarded a $20 million contract modification to accelerate its work on supporting the production of Space-Based Infrared Systems Geosynchronous Earth Orbit, or SBIRS GEO, satellites numbers 5 and 6, bringing the total cumulative face value of the underlying contract to $346.8 million. This contract modification relates to the production of hinges, valves, structures, and other special test equipment needed to produce the SBIRS GEO 5/6 satellites and is due for completion by June 19, 2016.
  • Northrop Grumman (NYSE: NOC) was awarded a $15.9 million contract modification to provide continued supplies, services, and maintenance to the U.S. Army’s Counter-Rocket, Artillery, Mortar command and control system through Nov. 3.

ALSO READ: Countries Spending the Most on the Military

 

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