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Pentagon Awards $38 Million for Biometric and Anti-Missile Work

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By Rich Smith, The Motley Fool

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On Thursday, the Department of Defense announced the award of several small (in defense industry terms) contracts to a handful of companies. Collectively, the awards add up to $38 million in value. Individually, they break down as follows:

  • EADS was awarded a $21 million modification to a previously awarded firm-fixed-price contract to supply “security and support mission equipment package production cut-in services” to the U.S. Army. According to DoD, with this modification, the value of EADS‘s initial contract win has risen to $2.26 billion.
  • CACI won a $9.7 million modification to a firm-fixed-price contract for the provision of “program management and engineering services” supporting DoD biometric programs. The total cumulative face value of the underlying contract has now risen to $43.4 million. 
  • Lockheed Martin was awarded $7.3 million as a modification to its contract to incorporate Large Aircraft Infrared Countermeasures (LAIRCM) NexGen Sensors onto HC/MC-130J aircraft Super Hercules transport aircraft. LAIRCM is a laser-based aircraft anti-missile defense mechanism being developed by Northrop Grumman for the Air Force. It involves mounting hi-intensity lasers on an aircraft, which lasers are then used to disable incoming missiles. Lockheed’s work, installing the system on the Super Hercules planes, should be complete by Oct. 15, 2015.

The article Pentagon Awards $38 Million for Biometric and Anti-Missile Work originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin and Northrop Grumman. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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Business, Finance, Occupation & Industry

Northrop Wins $50 Million in Electronic Warfare Contracts

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By Rich Smith, The Motley Fool

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On Tuesday, the Department of Defense announced the award of more than $50 million via two new contracts for Northrop Grumman . Both contracts fall under the broad category of “electronic warfare” products, but one is offensive, and the other defensive.

The larger, offensive equipment award calls upon Northrop to supply $30 million worth of “contractor logistics support services” on the company’s “precision geo-location and non-traditional intelligence, reconnaissance and surveillance” radar pod, the AN/ASQ-236, for the U.S. Air Force. The AN/ASQ-236 is an externally mounted, self-contained antenna and radar system installed on the Boeing F-15E Strike Eagle. Northrop is to service the equipment in question through March 11, 2016.

The larger, defensive award is a $20.6 million contract modification through which Northrop will provide both hardware and support services for the Air Force‘s Large Aircraft Infrared Countermeasures System (LAIRCM). LAIRCM uses Northrop’s high-intensity Viper Laser to target and blind incoming heat-seeking missiles, to disable them before they can engage a defended aircraft. LAIRCM is already installed on some Sikorsky CH-53E helicopters. The Pentagon has been working to expand its deployment on fixed-wing transport aircraft, such as C-17 and C-130 transports, as well as other helicopters. The current contract, however, is labeled “involves Foreign Military Sales” — so deployment plans may extend beyond U.S. military forces.

LAIRCM is estimated to cost approximately $3 million per unit, adding $3 million to the cost of each aircraft upon which it is installed. Northrop’s work on the instant LAIRCM contract is to be completed by April 30, 2015.

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The article Northrop Wins $50 Million in Electronic Warfare Contracts originally appeared on Fool.com.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Northrop Grumman. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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