The Department of Defense announced $2.61 billion worth of contracts Tuesday in 52 separate awards --- and General Dynamics won two of them.
The company's first and largest win was actually a contract "modification" rather than a new contract, and was awarded to General Dynamics' Electric Boat Corp subsidiary, not to the parent company per se. It exercises options to have Electric Boat continue performing lead-yard services, development studies, and design efforts on Virginia-class nuclear fast-attack submarines, and is valued at $152.4 million. Work on this contract should be completed by September 2014.
Another General Dynamics division, Ordnance and Tactical Systems this time, won an actual new contract, a $34.1 million firm-fixed-price, non-option-eligible, non-multiyear contract whereby the defense contactor will disarm and dispose of M26 (H104) Multiple Launch Rocket System rocket pod containers, rockets, and components.
Together, the two contracts amount to $186.5 million in incremental revenue for General Dynamics.
The article General Dynamics Wins $186.5 Million in Two Pentagon 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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