General Dynamics Information Technology, a business unit of
General Dynamics Corporation
), has received an eight-year Federal Bureau of Investigation
Information Technology Supplies and Support Services (FBI IT Triple
S) contract. Per the contract, the company will provide information
technology ("IT") services and cover three task orders with a
combined value of $19 million.
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To assist the FBI Digital Evidence Section, the company will
provide it with a full range of information assurance and security
support according to the first task order. Particularly, the
company will be involved in executing systems engineering,
administration and security duties, as well as look after the
training development and office management. Moreover, to develop
and update certification and authorization processes and programs
for both new and legacy IT systems, the company will work with FBI
Per the second task order, the company will be responsible for
FBI's Enterprise Management System ("EMS"). Also, it will manage
workflow and implement and maintain software and image-management
tools so that the users can access and share data steadily.
According to its third task order, the company will engineer,
configure, integrate, and advise on the procurement of virtual
server platforms in enterprise-wide FBI environments.
General Dynamics is well aware of the unique needs of FBI. The
company has been providing IT services to the FBI since 2008. The
company received this multiple, indefinite delivery/indefinite
quantity contract as one of the 46 awardees from the FBI in
November 2010. The contract had a potential value of $30 billion
over eight years if all options are exercised.
General Dynamics plans to deliver cost-effective IT solutions and
training to the FBI to gear it for the next generation of
enterprise operations and management. Currently, the company
carries out engineering, deployment, operations and maintenance
services at FBI headquarters in Quantico, Virginia, and in several
field offices throughout the United States.
Based in Falls Church, Virginia, General Dynamics is engaged in
mission-critical information systems and technologies, land and
expeditionary combat vehicles, armaments and munitions,
shipbuilding and marine systems, and business aviation. The
company's revenue exposure that is spread over a broad portfolio of
products and services helps it in keeping the overall growth
However, we are concerned as the company is largely tied to the
U.S. defense budget, where the threat of budget cuts is high. Also,
we have turned slightly cautious about the risks related to the
execution of key projects. The company presently retains a
short-term Zacks #3 Rank (Hold) that corresponds with our long-term
Neutral recommendation on the stock.
General Dynamics has to mainly compete with
Lockheed Martin Corporation