The Boeing Co.
) won four contracts from the U.S. Department of Defense (DoD) on
Sep 25, 2013 with a total value of $118.6 million.
Per the first contract, worth $57.4 million, Boeing achieved a
delivery order under a previously awarded performance based
logistics contract to supply various parts required for the
repair of the AV-8 aircraft for the Navy. Work on this contract
will be performed in St. Louis, Mo. with deliveries scheduled to
be completed by Sep 30, 2014.
The second contract calls for Boeing to perform non-recurring
engineering, fabrication, inspection, and testing work on 10
pre-production Operational Test Program Sets to be used on the
EA-18G Growler electronic warfare aircraft. With a value of $41.8
million, this contract is a cost-plus-fixed-fee delivery order
that runs through Aug 2018. Work on this contract will be
performed in St. Louis, Mo.
The next contract, worth $9.7 million, is a cost-plus-fixed-fee
delivery order to provide the necessary services to assess and
dispose of non-avionics systems on the T-45 Subsystems Service
Life Assessment Program. This would ensure that the T-45 Goshawk
training jet planes remain operational through their expected
life expectancy of 2035. This operation should be completed by
Lastly, Boeing achieved an approximately $9.7 million contract to
supply 100 additional composite horizontal stabilators (CHS) and
one tool string to the U.S. Army. This is a firm-fixed-price,
non-option-eligible, non-multi-year modification contract.
The series of defense contracts proves that the defense behemoths
are to some extent immune to the threat of sequestration. Defense
players like Boeing,
Lockheed Martin Corp.
Northrop Grumman Corp.
) are doing well even in trying times. Small contracts doled out
by the DoD have kept alive the revenue stream of these companies.
Boeing presently retains a short-term Zacks Rank #3 (Hold). Among
the stocks worth considering in the defense space are Zacks
Ranked #2 (Buy) Lockheed Martin and Northrop Grumman.
BOEING CO (BA): Free Stock Analysis Report
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