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Nothing to do with PM, just interesting...Pentagon Insider: Guess Who Won $400 Million in Defense Contracts Yesterday?By Insider Trading, NewsinPublished: May 28, 2015 at 11:27 amFor many investors, the U.S. government seems a black box. Taxes go in, spending comes out — but with the exception of the occasional headline-grabbing megacontract, where the spending goes, and how much is going to whom, remains very much a mystery. Except that sometimes, if you look very carefully, and know where to look, you can sometimes get a glimpse at where the money is going. And believe it or not, one of the easiest places to take a good peek at how the U.S. government spends its money is at… the U.S. Pentagon. Every day of the week, the Department of Defense publishes a detailed list of every contract it’s awarded that day, larger than $6.5 million in size. In today’s column, we’ll examine the spending for Wednesday, May 28, 2015 — and specifically, the top three contracts awarded to publicly-traded companies. Wednesday’s top 3 Bell/Boeing Joint Program Office, the joint venture between Textron (NYSE:TXT) and Boeing (NYSE:BA) that builds the V-22 Osprey tiltrotor aircraft. The JPO was awarded a $38.4 million contract modification to pay for repair parts needed for U.S. Navy Ospreys. Deliveries are due to be completed in December 2017. General Dynamics (NYSE:GD), whose Electric Boat subsidiary won a $46.4 million contract to plan maintenance, upgrades, and modernization work on the nuclear fast-attack submarine USS Montpelier (SSN 765). This contract will run through February 2018. And finally, the day’s big award went to Young & Rubicam, a subsidiary of British advertising agency WPP Group plc (NASDAQ:WPPGY). For $84.4 million, the firm will perform “advertising and marketing services” for the U.S. Navy through at least July 2016. This contract may be extended by as much as four one-year “options,” however. If all options are exercised, WPP could be in line to collect as much as $457.5 million for its services through July 2020. With annual revenues of $17.5 billion, WPP is actually a bigger business than “traditional” defense contractor Textron. With a net profit margin of 9.3%, it’s also more profitable (per dollar of revenue collected) than any traditional defense contractor on today’s list. Read more at http://www.insidermonkey.com/blog/pentagon-insider-guess-who-won-400-million-in-defense-contracts-yesterday-350228/#zCSqZHTmmgj4je9T.99 |
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