Pentagon Awards $7 Billion Green Energy Contract

The Department of Defense awarded eight defense contracts Wednesday, worth $7.3 billion in total.

The single largest award, constituting 96% of the funds on offer, went to a single, privately held alternative energy firm -- Foresight Renewable Solutions, LLC, based in San Francisco. The U.S. Army Corps of Engineers granted Foresight a $7 billion firm-fixed-price, indefinite-delivery/indefinite-quantity contract "for use in completing and awarding power purchase agreement task orders." The Pentagon's contract announcement did not make clear whether this award is in any way related to the similar-sounding $7 billion in Power Purchase Agreement contracts that were announced last summer.

In addition to the private Foresight contract, the Pentagon announced awards to the following publicly traded companies:

  • Lockheed Martin , which was awarded a $35.8 million contract modification funding the development of a Universal Armament Interface capability in software controlling use of Small Diameter Bombs carried by U.S. Navy F-35 Lightning II stealth fighters. These funds cover ground tests of the software only. Testing should be completed by April 2018.
  • Accenture was awarded a $7.5 million contract modification from the U.S. Army, funding "enterprise business system onsite support and change requests" through June 27, 2015. 

The article Pentagon Awards $7 Billion Green Energy Contract originally appeared on Fool.com.

Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Accenture. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Cliff Claven

85% of Army combat units are no longer combat ready, but they have $7 billion to spend on open-ended contracts for "green energy" that can't even specify what is to be delivered and at what price. "Indefinite-delivery/indefinite-quantity" is a good description for the level of Army brain power that went into this. What is clear is that this is about generals furthering their careers by pleasing their political masters instead of acting on behalf of national security and American citizens.

January 30 2014 at 4:05 PM Report abuse rate up rate down Reply