General Dynamics Corp.
) clinched two Department of Defense (DoD) contracts totaling
$63.9 million. The first contract worth $48.8 million calls for
the upgrade of the U.S. Marine Corps Range Training Systems
General Dynamics will offer production, test, installation and
delivery of the RTSs in support of the Navy's Program Manager
Training Systems ("PM TRASYS"). The contacting activity is the
Marine Corps Systems Command, Quantico, Va. The contract will run
through Sep 2016 and the work will be executed in Fairfax,
The PM TRASYS initiative enhances the fighting capabilities of
the Marine Air-Ground Task Force and maritime expeditionary
forces positioned globally via training support and development
of training systems as well as devices.
The smaller contract worth $15.1 million went to General
Dynamics' SATCOM Technologies Inc. for the production and supply
of up to 80 Ku-Band terminals, Ka-Band conversion kits and X-Band
conversion kits for the Naval Air Warfare Center Aircraft
Division, Special Communications Requirements Division. The
delivery is expected to be concluded in Sep 2016.
Active counter terrorism programs worldwide are expected to
remain a crucial element of the country's defense program in the
coming years. This will require constant system upgrades in U.S.
Navy and Army training programs, opening up opportunities for
The company has strategically withstood the difficult budget
climate in the U.S. by focusing on the development of its
diversified defense products. The steady inflow of international
orders has been a booster and will continue to contribute to
General Dynamics' future growth.
The countries of Egypt, Saudi Arabia, Iraq and Kuwait in the
Middle East are expected to be its primary customers. Recently,
General Dynamics received a $187.5 million contract for the
conversion of 44 M1A1 and 40 M1A2 model tanks to a M1A2S
configuration for the Kingdom of Saudi Arabia.
With domestic contracts also coming in at regular intervals,
General Dynamics is poised to remain well positioned in the
industry. Nonetheless, the company is subject to more
sequestration cuts in fiscal 2014.
General Dynamics presently carries a Zacks Rank #3 (Hold).
Other better-placed operators include Zacks Ranked #2 (Buy)
Northrop Grumman Corp.
B/E Aerospace Inc.
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