Saturday, March 16, 2013

Pentagon Awards $45.5 Million in Miscellaneous Defense Contracts

On Friday, the Department of Defense announced a number of smallish (in defense industry terms) contracts awarded to several publicly traded companies.

  • The largest award went to gas and electric utility�Integrys Energy (NYSE: TEG  ) , which won a fixed-price with economic-price-adjustment contract for the direct supply of a maximum of $14.9 million worth of "pipeline quality natural gas" to Army, Navy, Marine Corps, Coast Guard, and federal civilian agency customers in the northeast region. This contract runs through March 31, 2015.
  • L-3 Communications (NYSE: LLL  ) was awarded a $12.4 million firm-fixed-price, indefinite-delivery/indefinite-quantity contract to supply spare parts for AN/PVS-15, AN/PVS-18, and AN/PVS-31 model night vision goggles.�This contract funds delivery of goggles as ordered through March 2018.
  • The Air Force awarded privately held Sierra Nevada Corp. a $10.1 million cost-plus-fixed-fee contract for work on operational systems for "the functional development model."�The contract notification contains no more details than this. It is unclear whether the contract has anything to do with the disputed Sierra Nevada/Embraer (NYSE: ERJ  ) contract to supply the Air Force with Super Tucano fighter planes for use by the Afghan Air Force.
  • Last, smallest, and most mysterious, Science Applications International (NYSE: SAI  ) won an $8.1 million cost-plus-fixed-fee contract to perform work for the Defense Advanced Research Projects Agency. What kind of work remains a mystery, however, because as the DOD contract specifies: "this effort is classified."

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