The Contract

The US Department of Defense Press Desk released today that Textron [NYSE: TXT] has been awarded a part in the shared-ceiling contract to the sum of $499,000,000 for the research of an affordable future warfighter. They join Aurora Flight Sciences, Northrop Grumman, and Lockheed Martin in the the six-company Air Force program.

 

Source Excerpt

Department of the Air Force Contract:

“AAI Corp. Textron Systems, Hunt Valley, Maryland, is the fourth company awarded a previously announced $499,000,000 indefinite-delivery/indefinite-quantity, shared ceiling contract for six companies for the Aerospace Systems Air Platform Technology Research program. These contracts provide research for affordable, revolutionary capabilities for the warfighter. Work will be performed in Hunt Valley, Maryland, and is expected to be completed by Aug. 31, 2025. This award is the result of competitive acquisition and six offers were received. Fiscal 2017 research and development funds in the amount of $100,000 are being obligated at time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Ohio, is the contracting office (FA8650-17-D-2714).”

Source

 

Contract Interpretation

  • Indefinite-Delivery/Indefinite Quantity: Such a contract provides for an indefinite number of items, within an agreed upon limit. In this case, the quantity is defined by the dollar amount. More

 

Aerospace Systems Air Platform Technology Research

The Aerospace Systems Air Platform Technology Research (ASAPTR) program has four of six contracts currently filled. The contract synopsis, directly from fbo.gov:

To conduct research to develop, demonstrate, integrate and transition new aerospace vehicle technologies and systems that will provide affordable, revolutionary capabilities to the warfighter.

These technology developments will provide for cost effective aerospace vehicle platforms capable of accurate delivery of weapons, payloads (e.g., sensors), and cargo worldwide.

To break it down further, these companies are being approached for the potential development of a low-cost fighter. Textron has already been working on both their Scorpion and AT-6 Wolverine for the Light Attack/Armed Reconnaissance program. You can read about them and more in my full due diligence report on Textron, here.

 


Disclaimer

As of this moment, I do not own shares of Textron. My opinions are entirely my own and may or may not reflect the opinions of my peers on TickHounds. I am not being compensated for sharing my due diligence in any way other than what tips may be accrued.

Most information for this post was retrieved from various sources listed throughout the post. For other sources, see below:

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