Defense Department Awards Contracts to FedEx, UPS, Alaska Air
The U.S. Department of Defense announced on Thursday the award of more than a dozen contracts. We highlight a few here.
The U.S. Department of Defense announced on Thursday the award of more than a dozen contracts for everything from environmental rehabilitation work to repair and maintenance work for missiles going to various governments around the world. We’re highlighting a few here.
The Defense Department’s Transportation command awarded five companies maximum three-year contracts for domestic and international delivery services. The contracts call for international express delivery of the federal government, the Defense Department, civilian federal agencies and cost-reimbursable contractors for shipments up to 300 pounds. The first contract year begins on October 1, 2014, and may be renewed with two one-year options. FedEx Corp. (NYSE: FDX) and United Parcel Service Inc. (NYSE: UPS) each received maximum awards of $617.33 million. A division of Alaska Air Group Inc. (NYSE: ALK), National Air Cargo and Polar Air Cargo each received a maximum award of $203.37 million.
FedEx also received a $51.2 million option renewal for a contract to pack and transport perishable subsistence to the Pacific region. The total value of the contract, of which is the third renewal, rises to $190.1 million.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
