The Pentagon Just Awarded Another $293.1 Million In Defense Contracts
The Department of Defense announced seven separate defense contracts Thursday, worth either $293.1 million in total, or much, much more -- depending on how one looks at it.
Boeing Co (NYSE: BA) took home two of the contracts on offer, including:
- A $51.2 million cost, plus an award-fee contract to support intercontinental ballistic missile (ICBM) guidance subsystems for the U.S. Air Force through Feb. 1, 2023.
- A $12 million sole-source, firm-fixed-price contract to supply the U.S. Navy with aircraft horizontal stabilizer units through January 2018.
Great Lakes Dredge & Dock Corporation (NASDAQ: GLDD) won a single, $23.4 million firm-fixed-price contract to perform stabilization services for the U.S. Army Corps of Engineers. This contract will run through April 15, 2015.
The really big contract of the day, however, concerned the Navy's Consolidated Afloat Networks and Enterprise Services (CANES), a massive, $2.5 billion endeavor to modernize communications networks across the U.S. Navy by August 2022.
Five firms, including including publicly traded General Dynamics Corporation (NYSE: GD), Northrop Grumman Corporation (NYSE: NOC) and BAE Systems PLC (ADR) (OTC: BAESY), are already approved to bid on work under the project.
On Thursday, the Navy added to more: CGI Federal, which according to S&P Capital IQ is a subsidiary of Canada's CGI Group Inc. (NYSE: GIB), and also DRS Laurel Technologies, a subsidiary of Italy's Finmeccanica (OTH: FINMY).
No new funds were added to the CANES contract value in conjunction with this announcement.
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