General Dynamics Corporation’s GD business unit, General Dynamics Information Technology, has secured a contract from the Defense Information Systems Agency to provide communications technical services for the U.S. Air Force’s Central Command (“USAFCENT”) in Asia.
The contract has potential value of $450 million, if all options are exercised, under a five-year agreement.
Per the contract, General Dynamics will provide support for communications systems acquisition, integration, installation, operations and maintenance. Work will be performed at the Shaw Air Force Base in Sumter, SC and locations throughout Southwest and Central Asia where the USAFCENT operates.
According to the company, over 200 employees will be hired to support the contract. The company also stated that it will provide mission-essential communications and IT support services to the USAFCENT in the Persian Gulf region and Central Asia.
Over the years, General Dynamics has maintained a longstanding strategic alliance with the U.S. defense establishments and strives to meet its commitments in terms of maintaining product and service standards along with punctuality. It has been providing the USAFCENT's Combined Air and Space Operations Center with enterprise communications solutions, services and logistical support for over 10 years.
We remind investors that General Dynamics not only reported better-than-expected third-quarter earnings but also raised its 2015 profit guidance on higher defense orders and solid demand for its Gulfstream planes. Revenues increased 3.1% driven mainly by the Marine segment (up 14.7%). The company’s revenues are derived from a broad portfolio of products and services that help to keep its overall growth momentum steady.
Zacks Rank
General Dynamics currently has a Zacks Rank #2 (Buy). Other favorably placed stocks in the aerospace and defense sector are Leidos Holdings, Inc. LDOS, Boeing Company BA and Huntington Ingalls Industries, Inc. HII. While Leidos sports a Zacks Rank #1 (Strong Buy), both Boeing and Huntington Ingalls carry the same rank as General Dynamics.
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