L3 and L3Harris Win $363M in US Defense Contracts

Contract Awards Overview

L3 Technologies and L3Harris Technologies have been awarded U.S. defense contracts collectively valued at over $363 million. These agreements focus on providing critical sustainment and support services for advanced defense and space systems, reinforcing their positions as key government contractors.

Breakdown of the Agreements

L3 Technologies secured a $283.3 million sole-source contract from the U.S. Department of War for ground control element support, with work scheduled for completion by 2031. In a separate action, L3Harris Technologies received an $80.27 million modification to an existing contract for National Space Defense Center sustainment, raising the total contract value to $1.59 billion.

Market and Industry Implications

These awards signal robust and ongoing government investment in the aerospace and defense industry. The long-term nature of the contracts provides L3 and L3Harris with significant revenue visibility and stability, which is often viewed positively by investors and can bolster stock performance in the sector.

Summary

The contracts underscore the essential role both companies play in maintaining U.S. national security infrastructure. Markets will likely view these developments as confirmation of the companies' strong relationship with the Department of Defense and their ability to secure large-scale, long-duration projects.

FAQ

Q: What is the total value of the newly awarded contracts?
A: The combined value of the new contract and modification awarded to L3 Technologies and L3Harris is approximately $363.57 million.

Q: What are the primary services covered by these contracts?
A: The services include logistics support, depot-level maintenance, software and hardware support, and cybersecurity for ground control and space command systems.

Source: Investing.com