The Boeing Co. BA won an indefinite-delivery/indefinite-quantity contract, worth $357.9 million, from the U.S. Department of Defense (DoD). Contracting activity is the Naval Air Systems Command, Patuxent River, MD.
Per the contract, Boeing will procure Lots 4-8 full-rate production of the DSU-38 A/B Precision Laser Guided Sets (“PLGS”) for the U.S. Navy, Air Force and foreign customers, including the governments of United Arab Emirates, Belgium, Turkey, Morocco and Saudi Arabia.
The PLGS, along with KMU-572 guidance sets, are used to produce the Laser Joint Direct Attack Munition system.
Work is scheduled to be complete by Dec 2021. The company will carry out 68% of the work in Fort Worth, TX and the rest in Cincinnati, OH; St Louis, MO; Odessa, MO; Simpsonville, SC; Minneapolis, MN; Danville, VA; Georgetown, TX; and Cleveland, OH.
Boeing also secured a modification contract from the Air Force, worth $8.6 million, to provide services for operations, maintenance, and logistics sustainment support of all on-orbit Wideband Global SATCOM satellites. Work is scheduled to be complete on Dec 31, 2016. Contracting activity is Space and Missile Systems Center, Peterson AFB, CO.
Boeing witnesses a steady flow of contracts from the DoD. Earlier this month, the company won a $134 million DoD contract. Per the contract, it will provide sustainment support for the Air Force’s E-4B fleet.
Boeing is one of the major players in the defense business. The company’s defense business stands out among its peers by virtue of its broadly diversified programs, strong order bookings and order backlog. The company has been engaged in reshaping its defense portfolio from time to time. In Feb 2015, it created a new organization – BDS Development – as part of the restructuring of its defense and space business. The move is expected to enhance product efficiency and lower costs for Boeing’s defense customers in addition to maintaining delivery schedules.
Zacks Rank
Boeing currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the aerospace and defense sector are Leidos Holdings, Inc. LDOS, General Dynamics Corporation GD and TransDigm Group Incorporated TDG. While Leidos Holdings and TransDigm Group sport a Zacks Rank #1 (Strong Buy), General Dynamics carries a Zacks Rank #2 (Buy).
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