The Department of Defense (DoD) offered several contracts
aggregating $263.4 million yesterday. Of the contenders was
The Boeing Company
) which clinched two back-to-back contracts totaling $26.9
The larger contract worth $18.1 million went to Bell-Boeing
Joint Project Office, a collaborative venture between
) and Boeing. This involves providing continued logistics
services to the different versions of the V-22 Osprey tiltrotor
aircraft operated by the U.S. Marine Corps, Air Force and Special
Forces Operations Command.
Bell-Boeing's V-22 Osprey tiltrotor aircraft includes the
MV-22, the Marine Corps variant which offers greater
maneuverability and can carry combat troops twice as fast and
five times farther than previous helicopters. The CV-22 is the
Air Force variant which delivers long-range vertical take-off and
landing insertion and extraction capability as well as permits
aerial refueling and world-wide self-deployment.
The contracting activity is the Naval Air Systems Command,
Patuxent River, MD. The contract is expected to run through Jan
2014. The tasks relating to the contract will be carried out in
Amarillo, Texas and Philadelphia, PA.
Boeing's business wing Insitu Inc. secured the second contract
valued at $8.8 million for the delivery of a single Low Rate
Initial Production II RQ-21A "Blackjack" Unmanned Aircraft
System, including air vehicles, ground control stations, launch
and recovery equipment, and air vehicle support equipment to the
U.S. Navy. The order is expected to be concluded by May 2014.
The 81-pound Blackjack is a small-sized unmanned aerial
vehicle (UAV) launched by catapult and has a flight endurance of
over 13 hours. The aircraft is able to cover speeds of up to 90
knots. It is primarily a surveillance and reconnaissance
Lately, Boeing has mostly secured low-priced contracts with
the occasional high-value orders attributable to the ongoing
sequestration in the U.S. The recent being a $325 million
contract to offer "diverse and highly complex" systems
engineering and integration services related to the country's
ballistic missile defense system.
Boeing's diverse defense product offering has attracted
significant attention from the Middle East, India and Australia.
Foreign military sales contracts would to a large extent offset
budget austerities in the U.S.
Currently, Boeing carries a Zacks Rank #2 (Buy). Other
well-placed operators include Zacks Ranked #2
Lockheed Martin Corp.
Northrop Grumman Corp.
BOEING CO (BA): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
TEXTRON INC (TXT): Free Stock Analysis Report
To read this article on Zacks.com click here.