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2018 Defense Contracts News Update

Current Events, Industry News

The federal government awards dozens of lucrative defense contracts to civilian companies each year. The partnerships formed by the government and these businesses are crucial to the preparation and readiness of each branch of the American military and the protection of American allies. These five companies have earned some of this year's biggest federal defense contracts to create new technology, products, and services.

Lockheed Martin Corp

Lockheed Martin Corp, based in Bethesda, Maryland, recently won bidding for two defense contracts. The first contract, which totals $3.5 billion, is for the creation of technology and services for simulations, maintenance, sustainment, and operations. It will also create products like simulators, instrumentation systems, and live fire ranges.

The second contract, which is worth $482 million, requires the company to make initial air vehicle spares. These products will be made in support of the F-35 Lightning II aircraft.

Raytheon

Waltham, Massachusetts global defense and industrial corporationRaytheon has been awarded a federal defense contract worth $467 million. This contract will be paid by Qatar and the United Arab Emirates and is for large weapon sales to both countries.

Qatar is paying for Raytheon's assistance in upgrading its Air Operations Center. This project will include infrastructure construction as well as services for installation, integration, and sustainment. It also will involve obtaining multi-functional information distribution systems, low volume terminals, global positioning systems, selective available anti-spoofing module chips, and other technology gear that will be used to strengthen the country's response to electronic and cyber warfare.

The United Arab Emirates wants to purchase from Raytheon 300 AIM-9X-2 Sidewinder air-to-air missiles. It also wants to buy training missiles, guidance units, and spare parts that it will use to arm its fleet of Lockheed Martin F-16 jets. The total revenue from the UAE contract totals $270.4 million.

New Balance

Based in Boston, Massachusetts, New Balance recently won a $17.3 million dollar from the Department of Defense to make athletic shoes for the Army. The shoes will be worn by recruits coming into basic training. The contract is seen as a boon to the company because it will keep more than 1000 workers gainfully employed in factories in Maine, Massachusetts, and Norway. Politicians say it also preserves and grows American manufacturing jobs.

The contract also satisfies legislation that demands the military buy products and services from American companies whenever possible. The contract is for 18 months and has an optional 18-month renewal clause.

Alion Science and Technology

Alion Science and Technology, which is headquartered in McLean, Virginia, won the bidding for a five-year $73 million Navy defense contract. While the company was the only bidder on the contract, it will assist the Navy in developing, integrating, and testing prototype technology for using in unmanned platforms and weapons.

The base year value of the contract is $13 million and calls for Alion to build prototypes tools for existing and future unmanned vehicles, weapons, and weapons control systems. The contract will also include the technology for mine, surface, and amphibious warfare as well as diving and life support, surveillance and reconnaissance, coastal and underwater intelligence, and littoral and riverine environments.

Leidos Inc

Leidos Inc has been awarded a $13.87 million Air Force defense contract for a project known as Compact semiconductor Mid and long-wave Opto electronics Research, or COSMO. COSMO will involve the creation of technology for infrared countermeasure systems.

The research for COSMO will take place at Kirtland Air Force Base in New Mexico. Its goal will focus on the advancement of semiconductor lasers that will be used for current and future countermeasure applications. The Air Force contract with Leidos Inc will last through April 2023.

These five American companies have been awarded some of the most lucrative defense contracts this year. They now bear the burden of creating and providing top notch technology, products, and services that will be used by the American military as well as by America's international allies.