K2 Energy Solutions Inc.

July 30, 2014

K2 Energy Solutions Incorporated, Henderson, Nevada, is being awarded a ceiling-priced $81,400,000 firm-fixed price/cost-plus fixed-fee, basic ordering agreement for the fully self-contained battery intermediate energy store system required to power a large modular capacitor bank for the electromagnetic railgun. Work will be performed in Henderson, Nevada, and is expected to be completed by December 2016. No funding will be obligated at time of award. The contract was sole sourced in accordance with the Federal Acquisition Regulation 6.302-5.