Zacks_Analysts' Blog : Eaton Wins Contracts - Analyst Blog

Eaton Corporation (ETN) has received two major supply contracts this week from the Army Corps and the U.S. Air Force.

Yesterday, the company won a $2.5 million contract from the Army Corps of Engineers to supply electrical products and services to upgrade the Hartwell Dam hydro-electrical power plant in Savannah, Georgia. Earlier this week, the company was awarded a $568.7 million contract to provide the U.S. Air Force’s Air Logistics Center (ALC), at the Hill Air Force Base, Utah.

Much of the activity from the new business will be at the worksite, with products being made at Eaton’s manufacturing facilities. But the projects will be overseen by the company’s Pittsburgh office. Both the projects are expected to begin this year.

Details

Army Corps Contract

Under the Hartwell contract, Eaton will design and engineer control and distribution systems, and install motor control centers, low-voltage switchboards and arc resistant low-voltage switchgear. Work is scheduled to begin April 19, 2010, with an expected completion date of October 30, 2010.

This contract is one of several recent agreements that Eaton has reached with government organizations, including $8 million in electrical products and services for the San Antonio Military Medical Center on the Fort Sam Houston Army base in Texas and supplying hybrid electric power systems for fuel-efficient shuttle buses purchased by the U.S. General Services Administration for use on U.S. military bases.

Air Force Contract

The Air Force contract is to supply power reliability products and complete turnkey services including engineering, project management, system integration, installation, training and onsite maintenance services. The $568.7 million contract will be divided between two suppliers over the life of the five-year contract with one single two-year option period. Eaton’s Electrical Service & Systems Division’s Federal Systems Business Unit will manage the work for the contract.

The Air Force awarded the contract to Eaton after competitively evaluating technical, past performance and price criteria. This represents the fourth Air Force contract for Eaton and its subsidiaries in the last 20 years.