Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Defense News Roundup: Saudi Tanks, UAE Rockets, and Fighters for Tunisia

Page 1 of 2

The U.S. military has a reputation as a somewhat secretive organization. But in one respect at least, the Pentagon is one of the most “open” of our government agencies. Every day of the week, rain or shine, the Department of Defense tells U.S. taxpayers what contracts it’s issued, to whom, and for how much — all right out in the open on its website.

So what has the Pentagon been up to this week?

DoD is budgeted to spend about $6.2 billion a week on military hardware, infrastructure projects, and supplies in fiscal 2013. (A further $5.6 billion a week goes to pay the salaries and benefits of U.S. servicemen and servicewomen). Last week, though, the generals maxed out their credit cards with abandon, awarding closer to $8.5 billion in new contracts — and expanding the scope of a massive $7 billion alternative energy production contractto boot.

Solar farm at Furnace Creek Ranch, Death Valley, Calif. Source: Wikimedia Commons.

Green energy
The big news of the past week was that the scope of the Pentagon’s recent purchases of green energy has finally been made clear. Over the past month, the Pentagon announced a pair of apparently independent, $7 billion-each Power Purchase Agreements to diversify the military’s energy supply into solar and wind power. Early last week, though, the Pentagon added a third category of alt-energy to its shopping list — geothermal — and clarified that “all awarded technologies will share a total estimated value of $7,000,000,000.”

Why is this important? Well for one thing, because it makes clear that all of the companies named in these three alt-energy contracts will be competing against each other for the $7 billion pot of prize money. This will tend to favor major power players Siemens and Dominion Resources, Inc. (NYSE:D), the only two companies that were named “winners” in at least two of the three awards for green-power production. While any of the 40 separate companies named can win task orders under the contracts in theory, these two have twice the chances of their rivals to win in practice.

Tank commander
Another big winner in this week’s defense contracting contest is General Dynamics Corporation (NYSE:GD). On Wednesday, General D nabbed a monster $188 million contract to upgrade Abrams main battle tanks for the Saudi Arabian Army. The “foreign military sales contract” was awarded to General Dynamics without competition from other bidders, and will give the company plenty of work, as it converts 84 M1A1 and M1A2 tanks to the Saudis’ preferred “M1A2S” configuration.

Bomb buster
Nearly as big was the $180 million contact that defense contractor SAIC, Inc. (NYSE:SAI) won, to help defeat the threat of roadside bombs in Afghanistan. SAIC has been hired to help the U.S. Army improve the effectiveness of its “Saturn Arch” anti-improvised explosive device initiative, which uses aircraft and drone-based sensors to track the deployment and installation of IEDs throughout the Afghan theater, with the aim of neutralizing the threat.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!