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Capstone Jumps on GSA Add

The company's products are now on the federal procurement roster.
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Capstone Turbine (CPST) - Get Capstone Turbine Corporation Report rose 11% after the company said its products got federal procurement clearance.

The Chatsworth, Calif., maker of microturbines for energy generation said Capstone-branded products have been approved by the General Services Administration and are now on the GSA Schedule.

"As a result of our continuing efforts to place Capstone MicroTurbine products into large market potentials, we have now created an avenue for the sale of Capstone-branded microturbine products to the U.S. government," said CEO John R. Tucker. "We are very pleased to receive this GSA approval and recognize the importance of being qualified as a GSA Schedule supplier. We have proactively taken this step, and created this opportunity, to provide Capstone products to one of the largest potential distributed generation buyers worldwide."

The GSA approval provides the opportunity for federal end-user customers to negotiate and acquire products and services from commercial suppliers. Capstone has been approved on the GSA Schedule for five years, through Jan. 1, 2011.

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"We are the only microturbine manufacturer to be awarded this important U.S. government procurement approval," Tucker said. "The GSA acts as a catalyst for nearly $66 billion in federal spending. That's more than one-fourth of the government's total procurement dollars, so this approval unlocks another important market sector and opportunity for clean, efficient, secure and cost effective Capstone-branded onsite energy solutions."

Early Tuesday, Capstone rose 39 cents to $3.84.