General Dynamics (GD) teamed up with major defense contractors and received a contract worth $439.7 million for the technology development of the U.S. Army's Ground Combat Vehicle (“GCV”) Infantry Fighting Vehicle (“IFV”) program.
The U.S. Army initially planned to provide development phase contract for its infantry fighting vehicle to three defense operators and ultimately select one among them for the production contract. However, the Army provided development contract to two operators, one being the General Dynamics led team while the other going to BAE Systems Land and Armaments LP, a part of London-based BAE Systems, which bagged a $450 million offer.
Per the contract, the team comprising Lockheed Martin Corporation (LMT), Raytheon Company (RTN), Tognum America, Inc. and General Dynamics will have to create an Infantry Fighting Vehicle within the next seven years. The goal of the team entails the development of an affordable ground combat vehicle that also ensures optimal soldier protection.
The team will work together on the GCV IFV platform and create a vehicle for a nine- soldier squad, a pioneer of its kind in the infantry fighting vehicle segment. All the expert operators in the team are entrusted with specific roles to create this combat vehicle.
General Dynamics being the prime contractor is responsible for program management, vehicle design and integration. Besides, the company will be in charge of vehicle structure and chassis, squad and crew environments and integrated survivability and safety.
Lockheed Martin will be responsible for the turret, lethal and non-lethal effects and embedded training; Raytheon will take charge of RPG protection system, indirect-vision and sensor integration; and Tognum America will provide the power pack of the vehicle, which comprises the engine, transmission and generator.
The U.S. Army has earmarked $7.6 billion for the research and development of the Ground Combat Vehicle between 2012 and 2017. The ultimate aim is to create a new infantry fighting vehicle and replace it with its existing fleet of more than 1,800 Bradley infantry fighting vehicles.
General Dynamics currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. Its peers The Boeing Company (BA), Lockheed Martinand Textron Inc. (TXT) also currently hold a Zacks # 3 Rank.
Falls Church, Virginia-based General Dynamics, with its units, operates in business aviation, land and expeditionary combat systems, armaments and munitions, shipbuilding and marine systems, and information systems and technologies.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
RAYTHEON CO (RTN): Free Stock Analysis Report
TEXTRON INC (TXT): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment