Michigan could expect an economic impact of nearly $1 billion from new defense contracts awarded to eight companies in the closing days of the federal government’s budget year.
$395.5 million for General Dynamics Land Systems for research and development and testing on a next-generation version of its signature Abrams main battle tank.
The U.S. Department of Defense often sees an acceleration of contract awards shortly before the government’s fiscal year ends Sept. 30, and Army Contracting Command Executive Director recently said that the command could allocate nearly $1 billion worth of contracts in its last few weeks for a total of $10 billion in fiscal 2012.
$55.9 million for BAE Systems Inc. for engineering design, logistics, and testing and evaluation to update the Army’s current fleets of Bradley Fighting Vehicles.
General Dynamics has also teamed up with Raytheon Co. and Bethesda, Md.-based Lockheed Martin Corp. on a separate $439.7 million pre-production contract for Ground Combat Vehicle.
Science Applications International Corp. plans to source part of its work on a one-year, $82.1 million contract in Warren for logistics support on the Mine Resistant Ambush Protected vehicle family. The company was the sole bidder on the logistics contract that runs through December 2013 and will provide services in Warren, Afghanistan and Kuwait.
Chicago-based Boeing Co. also expects to source 84 percent of its work in Grand Rapids on a two-year, $15.4 million delivery order from the U.S. Naval Air Systems Command in Maryland for engineering to replace and integrate hardware and software components for the P-8A Multi-Mission Maritime Aircraft, also called the Poseidon, by September 2014.
Boeing expects to source the remaining 16 percent of that contract work in Seattle and to source a small portion of a $74.1 million contract in Ann Arbor for a joint venture company to produce seven V-22 Block C Containerized Flight Training Devices for the Naval Air Warfare Center Training Systems Division.
Elsewhere in Michigan, Rockford-based Wolverine World Wide Inc. will divide a five-year, $48.7 million contract award from the Army Contracting Command in Natick, Mass., with Illinois-based Belleville Shoe Manufacturing Co. The two companies won the award out of three bids to provide Army mountain combat boots through September 2017, but the amount of work for each company will be determined by future procurement task orders.
Armor Express Inc., a body-armor products maker in Antrim County’s Central Lake, also received a three-year, fixed-price, multiple-award contract from the Army’s Aberdeen Proving Ground in Maryland with a ceiling value of $24.6 million to procure up to a maximum 142,857 Concealable Body Armor Vests by September 2015.
Finally, Navistar Defense LLC, a business unit of Illinois-based Navistar International Corp. with defense vehicle engineering and program management offices in Madison Heights, received a two-year, $138.2 million, fixed-price modification to a previous contract from Tacom to provide upgrade kits to improve the Army’s fleet of MaxxPro MRAP vehicles previously produced by Navistar.