Alliant Techsystems Inc. (ATK) has been awarded a $50 million indefinite delivery indefinite quantity (IDIQ) contract from Marine Corps Systems Command. Under the five-year contract, the company will manufacture a new USMC Pack for the U. S. Marine Corps, which will replace the current fielded pack called the Improved Load Bearing Equipment (ILBE).
The new USMC Pack is a modular load bearing equipment system, designed to allow Marines to carry equipment needed in support of combat operations. The pack system comprises various components including the main pack, assault pack, assault pouch, sustainment pouch (quantity 2), hydration pouch (quantity 2), hydration carrier, hydration bladder system, sternum cinch, sub-belt, repair kit and USMC Pack instruction card. The sub-belt is excluded from the initial USMC Pack procurement and will be fielded at a later date.
The U.S. Marine Corps’ quest to replace and enhance this component of the Family of Improved Load Bearing Equipment (FILBE) to better integrate it with the fielded torso body armor systems led to the contract award for Alliant.
U.S. Marine Corps’ new pack increases the overall combat effectiveness of the user by maximizing the ability to carry combat loads more efficiently, minimizing the burdens of weight and improving overall system compatibility. Apart from imparting enhanced capability to the U.S. Marine Corps, the latest USMC Pack demonstrates Alliant’s commitment to improve the effectiveness of the U.S. armed forces.
Allaint’s Eagle Industries business will be responsible for the execution of the work under the Marine Corps contract. The company will perform initial work for the load bearings in its two Puerto Rico manufacturing plants. It anticipates completing production by September 2012.
Minneapolis, Minnesota-based Alliant Techsystems Inc. is a premier aerospace and defense company supplying products to the U.S. government agencies, and its prime contractors and sub-contractors. The company also supplies ammunition and related accessories to law enforcement agencies and commercial customers.
Alliant Techsystems presently retains a short-term Zacks #3 Rank (Hold). We maintain our long-term Neutral recommendation on the stock. On a competitive landscape, the company ranks at par with its peers Raytheon Co. (RTN) and Northrop Grumman Corporation (NOC), who also carry Zacks #3 Ranks.
