Pentagon Awards $555 Million in Defense Contracts

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The Department of Defense awarded 17 defense contracts with a total value of $554.6 million in its Thursday evening announcement of contract awards.

Textron (NYSE: TXT) took home contracts representing nearly half the funds announced:

  • $190 million (the day’s largest contract) in the form of a firm-fixed-price contract to supply the U.S. Air Force with 361 sensor-fuzed weapons, seven trainers, and 18 wind-corrected munitions dispenser tail kits by Dec. 31, 2016.
  • $75 million as a cost-plus-fixed fee contract awarded to its AAI subsidiary, which will support the U.S. Army’s Aviation and Missile Research, Development, and Engineering Center on technology integration work related to unmanned aircraft systems, including Textron’s Shadow. This contract will run through May 29, 2018.

L-3 Communications (NYSE: LLL) was the day’s other big winner, securing contracts worth:

  • $49 million: a foreign military sales contract to supply the Royal Saudi Land Forces with three operational flight training systems for UH-60L Black Hawk helicopters by May 25, 2018.
  • $55.4 million: a contract modification whereby the U.S. Navy exercised an option to have L-3 perform logistics support of TH-57 Sea Ranger helicopters through May 2015.

Other publicly traded companies winning contracts included:

  • Raytheon (NYSE: RTN) was awarded an $11 million option exercise to supply the U.S. Navy with five AN/USG-3B Cooperative Engagement Capability (CEC) Airborne Systems by November 2015.
  • Science Applications International Corporation (NYSE: SAI) won a fixed-price, indefinite-delivery/indefinite-quantity, prime vendor bridge contract worth up to $15.8 million to perform maintenance, repair, and operations work for U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agency locations in the Hawaii region through Sept. 15, 2014.
  • United Technologies’ (NYSE: UTX) Sikorsky Aircraft Corp subsidiary was awarded a $24 million contract modification to realign the funding between the fiscal 2014 advance procurement funds and the planned aircraft production funds for fiscal 2015, with no change to the UH-60 or HH-60 contract price. This contract runs through Dec. 31, 2015.

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