Military

Pentagon Awards $409 Million in Defense Contracts

The Department of Defense awarded 10 defense contracts totaling $408.9 million in its Friday evening announcement of contract awards. Among the publicly traded companies winning contracts:

  • Hewlett Packard (NYSE: HPQ) won the day’s largest award, a $138 million contract modification to a continuity of services contract (CoSC). HP will continue providing information technology services at nearly 2,500 Navy and Marine Corps locations worldwide through the Navy Marine Corps Intranet (NMCI) for three more months, through Sept. 30, 2014. This modification raises the value of the underlying contract to $5.74 billion.
  • Lockheed Martin (NYSE: LMT) was awarded a $122.1 million contract modification to supply the U.S. Marine Corps, Air Force, and Navy, and also international partners, with spare parts for their F-35 Lightning II Joint Strike Fighter aircraft. Parts are due for delivery by December 2016.
  • Raytheon (NYSE: RTN) won a $13.3 million cost-plus-fixed-fee foreign military sales contract to prepare drawings and specifications for the government of Saudi Arabia for the Joint Standoff Weapon C Block III variant. This work, plus work on qualifying and validating the designs, should be complete by September 2015.
  • BAE Systems (OTC: BAESY) was awarded a $15.1 million contract modification to perform maintenance and upgrade work on the guided missile destroyer USS Ramage (DDG-61) through November 2014.
  • GlaxoSmithKline (NYSE: GSK) won a contract to supply the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies with up to $17.6 million worth of flu vaccines through Sept. 30, 2015.
  • Sanofi (NYSE: SNY) won a similar contract for the supply of up to $9 million worth of flu vaccines. As with Glaxo’s contract, the users of these vaccines will be the U.S. Army, Navy, Air Force, Marine Corps, and federal civilian agencies, and Sanofi will supply these vaccines through Sept. 30, 2015.

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