Force Protection Treads Water

Force Protection (FRPT Quote) is holding its breath for a last-minute victory lap.

The deadline for the South Carolina-based defense contractor to win another big contract is looming, since the U.S. military is set to finish handing out its first round of awards for mine-resistant, ambush-protected vehicles (MRAPs) by the end of the month. The company has long been favored to dominate the MRAP program but has seen rivals, such as Navistar (NAVZ Quote), chipping away at its lead.

Indeed, late Thursday, none other than scandalized BAE Systems -- suspected of bribing foreign officials for other military business -- claimed one of the remaining first-round MRAP awards for itself. A U.S.-based subsidiary of the British defense giant landed a $212 million deal to supply 441 MRAP vehicles for the war on terror.

The award came just days after BAE revealed that the Department of Justice has launched a criminal probe of the company. Justice officials suspect that BAE may have funneled money to a Saudi prince in exchange for his help in securing an $86 billion weapons deal. The company has denied any wrongdoing.

BAE's new MRAP order took a toll on Force Protection in the meantime. Force Protection's stock, pressured this month by mounting competitive threats, fell more than 5% to $20.47 -- an eight-week low -- earlier Friday.