General Dynamics Corporation
) unit General Dynamics Information Technology has entered into a
task agreement, worth $39.9 million, with the General Services
Administration Federal Systems Integration and Management Center
("FEDSIM") to deliver consolidated information technology ("IT")
enterprise services and support to the National Defense University
("NDU"). It is a five-year contract with utilization of all
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Per the agreement, General Dynamics will provide enterprise service
desk, data center and application support services to the NDU,
which will enable NDU to apply IT resources more competently with
least service interruption. In addition, the company will supply
reliable information assurance services, network availability,
systems engineering and network operation, and server
administration and maintenance support.
FEDSIM is a collection of General Services Administration Project
Management professionals, who are proficient to provide project,
technical and acquisition related services to the federal
consumers. The experts help customers to make their large and
complicated IT projects through specialized Multiple Award
NDU is an U.S. academy, which provides professional military
education under the direction of the Chairman of the Joint Chiefs
of Staff. Its aim is to teach the members of the U.S. armed forces
by providing thorough joint professional military education.
Enterprise IT provides innovations in infrastructure consolidation
and modernization, cloud computing, cross-domain information
sharing, while offering a steady supply of new functions and IT
General Dynamics has a wide expertise in operating, managing and
maintaining cost-effective enterprise IT solutions. As a
sole-service provider to the NDU, the company always tries to
deliver secured and highly sophisticated solutions.
During second-quarter 2012 earnings call, General Dynamics lowered
its full-year 2012 earnings per share guidance range to $7.00 -
$7.10 from its earlier projection of $7.10 - $7.20. This revision
was primarily due to the possibility of a delay in the awarding of
contract of Information Systems and Technology's tactical
communications business. At the end of second-quarter 2012, the
company's total order backlog was $52.4 billion, down from the
year-ago backlog of $57.1 billion.
We are concerned about the challenges from defense budget cutbacks
and the risks related to the execution of key projects, which might
negatively affect the company's forthcoming performance.
General Dynamics Corporation currently retains a short-term Zacks
#4 Rank (Sell).
Falls Church, Virginia-based General Dynamics Corporation engages
in mission-critical information systems and technologies; land and
expeditionary combat vehicles, armaments and munitions;
shipbuilding and marine systems; and business aviation. The company
operates through four segments: Information Systems &
Technology, Combat Systems, Marine Systems, and Aerospace. The
company competes with
Lockheed Martin Corporation