Market Overview

The Pentagon Just Awarded Another $293.1 Million In Defense Contracts

Share:
The Pentagon Just Awarded Another $293.1 Million In Defense Contracts
Related BA
Another Trump Bump For This Leveraged ETF
The Market In 5 Minutes: Fossil's Massive Move, Chipotle's New CEO, Unhappy Snapchat Users, Litecoin Cash
Alaska Air Group And Virgin America: What Is It Worth? (Seeking Alpha)
Related GLDD
Activists Are Shaking Things Up At Great Lakes Dredge & Dock
A Peek Into The Markets: U.S. Stock Futures Up Ahead Of Pending-Home Sales Report
Great Lakes Dredge & Dock's (GLDD) CEO Lasse Petterson on Q4 2017 Results - Earnings Call Transcript (Seeking Alpha)

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.

Related Link: The Pentagon Just Awarded These Defense Contracts

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.

Image credit: Public Domain

Posted-In: Defense contracts PentagonNews Contracts Best of Benzinga

 

Related Articles (BA + BAESY)

View Comments and Join the Discussion!