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News Link • Government Debt & Financing

Defense News Roundup: U.S. Special Forces Award a $10 Billion Contract

• Rich Smith, Motley Fool

Something to do with "special operations" -- but it's all very hush-hush
The biggest contract awarded last week, bar none, accounted for nearly two out of every three dollars' worth of contracts awarded -- and it happened just Friday. That was when the Pentagon announced that five previously little-known private military contractors -- ADS, Federal Resources Supply, Source One Distributors, Tactical & Survival Specialties, and W.S. Darley & Co. -- will share in a $10 billion firm-fixed-price, indefinite-delivery/indefinite-quantity contract for "support of special operational equipment tailored logistics support program."

Other than the fact that the contract will run through March 6, 2016, and will benefit the U.S. "Army, Navy, Air Force, Marine Corps, and federal civilian agencies," no further details were revealed about the contract.

A new aircraft carrier for the Navy
Second place in dollar value for contracts last week was a $1.3 billion contract modification won by military shipbuilder Huntington Ingalls (NYSE: HII  ) . Ingalls, currently busy getting the new nuclear aircraft carrier USS Gerald R. Ford (CVN-78) ship-shape and ready for service, has been instructed to begin collecting materials necessary to build the second ship in the Ford class, the USS John F. Kennedy (CVN-79). With an anticipated build-cost of $13 billion or thereabouts, this contract modification should cover about 10% of the ship's construction cost.


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