Aerospace & Defense

Pentagon Awards $10.5 Billion in Defense Contracts

The U.S. Department of Defense awarded 19 defense contracts in its Tuesday evening announcement of contract awards. The total value of contracts awarded was $10.46 billion.

Among the defense contractors winning contracts:

  • Olin Corp. (NYSE: OLN) won a $27.7 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract to supply the U.S. Air Force, Coast Guard, and Navy with an unspecified amount of 9mm frangible ammunition. Frangible rounds break up into fragments of metal upon impact, and are used in indoor and outdoor close quarter battle (CQB) training. This contract will continue through June 2019.
  • Boeing (NYSE: BA) was awarded a $19.8 million contract modification to supply the U.S. Navy with one spare P-8A CFM-56 engine and one spare engine build-up unit in support of Navy P-8A Multi-mission Maritime Aircraft. Delivery is due August 2015.
  • Rockwell Collins (NYSE: COL) was awarded a $15.9 million option exercise to supply the U.S. Navy with 182 RT-1990(C)/ARCs multiband, multimode receiver-transmitters, and to convert four RT-1939(C)s into RT-1990(C)s by December 2015.
  • General Dynamics (NYSE: GD) was awarded an $11.4 million contract modification to supply three additional DVH Stryker ECP ICVV V-hulled prototype test vehicles to the U.S. Army under Phase II of the Stryker Engineering Change Proposal Upgrade program. An upgrade on the original flat-bottomed Stryker design, the new Strykers are designed to better resist damage from IED explosions by deflecting the blast of an exploding device. Delivery is due Dec. 31, 2016.
  • Exelis (NYSE: XLS) was awarded a $9.5 million contract modification to provide unspecified Army Prepositioned Stock-5 support services to the Army Field Support Battalion-Qatar through Dec. 31, 2014.
  • BAE Systems (OTC: BAESY) was awarded a $9.3 million contract modification funding ship repair work and upgrades on the guided missile destroyer USS Carney (DDG-64) through September 2014.

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Beyond the traditional defense companies, non-traditional winners include:

  •  Ibis Biosciences, which, according to S&P Capital IQ, is a subsidiary of pharmaceutical giant Abbott Labs (NYSE: ABT) focusing on identification and characterization of infectious agents, won a $7.2 million cost-plus fixed-fee contract from the Defense Advanced Research Projects Agency — DARPA.” Under this contract, Ibis will develop a new PUMA Biosensor system, a point-of-care hand-held molecular diagnostics device that can be used to screen for the presence of viruses, respiratory pathogens, and bio threats in the field. Ibis will work on developing this device through April 30, 2015.
  • Kellogg, Brown & Root, better known as KBR (NYSE: KBR), won a $22.1 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract to support operations at the Isa Air Base in Bahrain, and also at the base’s outlying support sites, including at the Patriot missile battery site at Riffa, also in Bahrain. KBR will be responsible for “all management, supervision, labor, materials, and equipment” necessary for these locations’ functioning, including such services as management and administration, meals, housing, custodial services, pest control, and solid waste management. This contract will run through September 2019.
  • Food services company Sysco (NYSE: SYY) was one of the day’s biggest winners, claiming two separate awards: a contract to provide up to $173.5 million worth of subsistence prime vendor support for U.S. Navy locations in Seattle through Aug. 3, 2016; and also a separate contract for subsistence prime vendor support in Seattle worth up to $110.8 million. This contract, too, runs through Aug. 3, 2016.


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