Aerospace & Defense

Pentagon Awards $540 Million in Defense Contracts

The Pentagon awarded seven defense contracts in its Wednesday evening announcement of contract awards, totaling $540.4 million.

By far, the largest of these contracts, allocating nearly 83% of all funds on offer for the day, went to Britain’s BAE Systems (NASDAQOTH: BAESY), which was awarded a $447 million contract modification increasing the ceiling value on a contract to supply the U.S. Army with AN/AAR-57(V) Common Missile Warning Systems and associated spare parts. BAE will also provide the Army with systems engineering, technical, and logistics support services for both CMWS and for AN/ALQ-212 Advanced Threat Infrared Countermeasures (ATIRCM) systems through Sept. 29, 2016. BAE won a smaller, but related, contract for CMWS work last week.

CMWS is a system designed to notify the pilot/driver of an aircraft/vehicle when it has been targeted by a heat-seeking missile, and to identify the source of the threat. The related ATIRCM defensive system then attempts to jam such missile with infrared lasers, throwing them off course.

The other publicly traded companies winning contracts Wednesday were:

  • Northrop Grumman (NYSE: NOC) was awarded $25 million to supply the U.S. Marine Corps with 119 H-1 upgrade tech refresh mission computers for installation aboard the UH-1Y Venom utility helicopters and AH-1Z Viper attack helicopters by October 2017.
  • Invivo Corporation, which, according to S&P Capital IQ, is a subsidiary of the Netherlands’ Koninklijke Philips N.V. (NYSE: PHG), was awarded the third of seven possible one-year option exercises, worth up to $11.8 million, to supply the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies with radiology systems, subsystems, and components through May 31, 2015.

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