The Department of Defense (DoD) handed out multiple contracts
worth $10.92 billion as its fiscal 2013 draws to a close. Among
the chief winners was
L-3 Communications Holdings Inc.
), which won four contracts valued at a total $163.0 million.
Other major winners included
Lockheed Martin Corp.
Northrop Grumman Corp.
A contract worth $63.4 million went to L-3 Communications
Systems for the delivery of Advanced Extremely High Frequency
(AEHF) COMSEC TRANSEC SYSTEM hardware to the U.S. Air Force. Air
Force Life Cycle Management Center, Cryptologic and Cyber Systems
Contracting Division/HNCK, San Antonio, Texas, is the contracting
The contract is expected to run through Dec 31, 2018. The
COMSEC TRANSEC SYSTEM is used for receiving and sending both
classified and unclassified military communications. Intelligence
and reconnaissance operations are a critical backbone of the U.S.
defense. The AEHF COMSEC TRANSEC system is the next step in the
advancement of the military's future communication satellite
The second contract priced at $55.6 million was awarded to L-3
Communications Systems Field Support for aircraft maintenance and
logistical life cycle support on 54 Beechcraft C-12 Huron
transport aircraft for the U.S. Navy and Marine Corps. Of these
48 aircraft belong to the Navy and the rest to the Marine Corps.
The deal will expire by Sep 2014.
Two smaller contracts valued at $31.4 million and $12.3
million received by the company were for the delivery of FUM-153
A/B Point Detonating/Delay fuses to the U.S. Army and for the
supply of Video Data Link systems, common data link waveform
documentation and wave form testing equipment, respectively. The
latter also involves providing training to the Air Force
regarding its use. The Air Force deal will be completed by Sep
Despite the challenges from the sequester, L-3 Communications
remains well positioned on the back of its diversified operations
and technological upgrades. The company recently booked a $357
million task order from the GSA Federal Systems Integration and
In addition, better prospects from overseas customers are
expected to lead to earnings accretion. L-3 Communications
presently carries a Zacks Rank #3 (Hold).
L-3 COMM HLDGS (LLL): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
RAYTHEON CO (RTN): Free Stock Analysis Report
To read this article on Zacks.com click here.