GD Contract to Detect Sea Mines (BA) (GD) (LMT) (TXT)

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Defense contractor General Dynamics Corporation (GD) announced that its unit General Dynamics Advanced Informational Systems received a contract from the U.S. Navy's Naval Sea Systems Command worth $86.7 million. The company will design and build the Surface Mine Countermeasure Unmanned Underwater Vehicle ("SMCM UUV") system.

This new system will support Navy commanders to detect and identify mines in high-clutter underwater environments in a single pass. The vehicle specialty is that in a single go it will be able to detect mines that are floating in the ocean surface, resting and hidden on the sea floor. Besides, this vehicle will also accumulate environmental information, which in turn provides intelligence support for other mine warfare systems.

Per the contract, the company will build one Engineering Development Model (“EDM”) and five low-rate initial production systems if all options of the contracts are exercised. The SMCM UUV system will be built on an open systems architecture, so that it can seamlessly integrate into missions on Littoral Combat Ships, as well as other ships. We believe General Dynamics’ expertise in this area will aid the US Navy to effectively combat threats and safeguard its forces at sea.

This business unit of General Dynamics is engaged in delivering end-to-end mission solutions in systems integration, development, deployment and operations support. One of the most significant developments of this unit is the Littoral Combat Ship Platform. The open ended design of the platform enables it to easily install technology upgrades, adapt to new and more complex missions, and most importantly do them at a faster pace and lower cost.

General Dynamics currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Its peers are The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Textron Inc. (TXT)

Based in Falls Church, Virginia, General Dynamics along with its units operates in business aviation, land and expeditionary combat systems, armaments and munitions, shipbuilding and marine systems as well as information systems and technologies.

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