General Dynamics Wins IT, Training, and Ship Repair Contracts
Aug 1st 2013 10:52PM
Updated Aug 1st 2013 10:54PM
General Dynamics won a trio of new defense contracts from the Pentagon on Thursday, worth a combined $60 million -- and if all goes well, potentially twice that.
The largest of the awards, and the one with the most potential to grow, is an indefinite-delivery/indefinite-quantity, multiple award contract that General Dynamics shares with five other, privately owned companies. Contracted with fixed-priced provisions, it promises General Dynamics $30.8 million in return for providing technical and professional support, and related administrative services to the Center for Civil Military Relations. Specifically, General Dynamics will be training troops and government officials, primarily in Egypt, Indonesia, Singapore, and Saudi Arabia. The contract contains "options," which, if exercised, could lift its value past $94 million and extend its duration past the base period terminal date of July 31, 2014, through July 30, 2016.
The other two awards are smaller in size: $16.1 million for a firm-fixed-price contract to provide information technology and information management services to the U.S. Army Corps of Engineers and $13.1 million for a modification to a cost-plus-award-fee and cost-plus-incentive-fee contract to perform maintenance and upgrades to the landing helicopter assault ship USS Peleliu (LHA 5). General Dynamics' National Steel and Shipbuilding Co. (NASSCO) is expected to complete work on this contract by January 2014.
The article General Dynamics Wins IT, Training, and Ship Repair Contracts originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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