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Navy Awards Littoral Combat Ship (LCS) Training Contracts

The LCS is the newest U.S. Navy ship. Interestingly they are of 2 designs and built at 2 yards. This was done to speed production and also because the original plans called for fifty or more of the ships to be built. The Lockheed Martin (LMT) USS Independence design (LCS-1) is built at the Marinette Marine facility in Wisconsin and the USS Freedom (LCS-2) at the Austal America yard in Mobile, AL. The Freedom is designed by General Dynamics (GD).

So far each yard has delivered 2 ships having received contracts for up to 10. LCS-4, the USS Coronado, made by Austal is almost complete and will commission this year.

The ships despite their dissimilar hull shape have the same basic performance and weapons. They will be capable of being equipped with different modules depending on the mission and these will include anti-mine, anti-surface and air defense. The first LCS are based at San Diego, CA and are already carrying out operations.

In support of the program the Navy awarded Cubic Corporation (CUB) 3 contracts for training for the ships. Due to the 2 different designs there was one contract awarded in support of each. Then third for developing mission training packages. Each contract is worth almost $100 million.

As the LCS numbers grow there will be growing demand for more efficient training. These packages will help the Navy prepare a larger number of sailors for these ships.

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Ground Combat Vehicle Decision to be Delayed

3286900481_fe603c77a6_mIt is being reported that the Army has decided to delay the Ground Combat Vehicle (GCV) six months. This is being done most likely in response to the current budgetary situation with the potential sequestration cuts.

The Defense Department has done a good job awarding current contract options this past few months to get things on contract to limit the effects of sequestration on existing work. Unfortunately new contracts will be affected as there may not be as much money available to award later this year. GCV may be in that situation. Delaying it several months should get you into Fiscal Year 2014 with a better handle on what money you have and allow the budget to prioritize funding.

Sequestration may force across the board cuts in all defense appropriations and limit the ability of new, large contracts to be awarded for the remainder of this Fiscal Year.

Two teams of contractors were awarded development contracts by the Army for the M2 Bradley replacement in 2011. One of those designs will be selected to go into Engineering, Manufacturing & Development (EMD) and ultimately into full production. This may still be several years into the future. These were to General Dynamics (GD) and to a team of BAE Systems and Northrop Grumman (NOC). The bid by the 2 prime contractors on the cancelled Future Combat System (FCS) the last attempt to build a Bradley replacement, Boeing (BA) and SAIC (SAIC), was not accepted.

Photo from UNC -CFC-USFK’s flickr photostream.

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GD’s Electric Boat Wins Contract to Design Next SSBN for U.S. and U.K.

One of the largest contracts to be awarded this Fiscal Year was just given to General Dynamics (GD) submarine building arm, Electric Boat. The 5 year, nearly $2 billion contract is for design and development efforts supporting a new ballistic missile submarine.

This new boat will potentially replace the current U.S. Ohio class submarines and the Royal Navy’s similar Vanguards. Electric Boat is the primary producer of submarines for the U.S. Navy. While the Vanguard replacements will be built in the United Kingdom much of the design work will be done in the U.S. due to the fact they utilize a U.S. missile.

While there has been some reductions in the size of the U.S. nuclear arsenal with some of the Ohio class retired or re-designated there will ultimately still be a need for modernization of the design and new submarines. The U.S. is currently only building the Virginia class of fast attack submarines at Electric Boat and partner Huntington Ingalls Industries (HII).

Even with the potential for large cuts to the defense budget if sequestration takes effect these kind of contracts will continue to be awarded. Reductions in funding will limit how much is executed each year and potentially stretch out the work over more years then currently planned.

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GD’s Force Protection Divison Wins U.K. Contract

Force Protection was one of the first and largest manufacturers of Mine Resistant Ambush Protected (MRAP) vehicles used by the U.S. and its Allies in Afghanistan and Iraq. For a time during the first decade of this century the company won a large number of contracts to build, service and maintain these vehicles as the U.S. quickly ramped up its inventory.

Over the last few years though it was a different story as the company faced struggles due to declining demand and the fact that the new MRAP for Afghanistan, the MRAP-AT, contract was won by Oshkosh (OSK). Eventually the company and its assets were acquired by General Dynamics (GD) who also has made MRAP and armor for these vehicles.

That does not mean that different military forces are not investing in MRAP just that the market has shrunk significantly. The U.K. just awarded GD a contract for 51 more Force Protection Foxhound vehicles for use in Afghanistan. The value is just over $73 million.

The U.K. already operates Foxhounds and in 2010 ordered 376 of them. They are made in the U.K. by the former Force Protection.

The military vehicle market still remains strong as the U.S. needs to replace and upgrade large amounts of vehicles from the 1980′s that have seen heavy use since 2001. They also need to fit the stocks of MRAP’s into their tactical formations and doctrine.

Photo from Think Defence flickr photostream.

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Iraq Discussing Buying More U.S. Weapons

The Iraqi government is in discussions with the U.S. about purchasing more weapons systems for its Army. The new talks reportedly focus around getting up to 30 Stryker vehicles optimized for nuclear, biological and chemical weapon detection. The Stryker is an 8 wheeled armored vehicle manufactured by General Dynamics (GD). While the base vehicle provides troop transport it is made with a variety of weapon systems and equipment attached.

The value of this contract is estimated at $25 million.

The Stryker is based on a vehicle originally designed for the Canadian military and many parts of the current version are made in that country.

Iraq has purchased quite a bit of U.S. equipment in the last few years. The largest contract has been for 18 F-16 fighters made by Lockheed Martin (LMT). Iraq has also looked to other suppliers including Russia for some of their new systems which makes sense due to their historical usage of that nation’s hardware.

The Strykers are part of an overall $7 billion in new military equipment that supposedly will be sent to Congress for approval in the near term.

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General Dynamics Canada Completes Delivery of Advanced Airborne Acoustic Processing System on CP-140 Aurora — Press Release

The ability to locate and track underwater threats has been operationally validated during recent exercises.

OTTAWA, Ontario, Nov. 19, 2012 /PRNewswire/ — Advanced, high-performance airborne acoustic processing is now fully operational on Canada’s CP-140 Aurora aircraft with the final delivery and operational validation of the Modular VME Acoustic Signal Processor (MVASP).

General Dynamics Canada, a premier provider of defence electronic systems and a leading systems integrator of complete command, control, communication, computing, intelligence, surveillance and reconnaissance (C4ISR) solutions, has delivered the MVASP as part of the Aurora Incremental Modernization Project (AIMP). The AIMP is the mid-life upgrade of the Aurora aircraft operated by the Canadian Department of National Defence for surface and undersea surveillance roles. The MVASP is the primary underwater detection system on the aircraft and is used to locate and track underwater threats. These capabilities were validated in several national and international exercises this year.

“As the primary sensor for underwater ISR on the Aurora, the MVASP leverages the latest innovations in parallel processing to provide enhanced detection and localization of underwater targets,” said Peter Giles, product manager for underwater ISR at General Dynamics Canada. “Its advanced capabilities have been engineered to allow operators on fixed- and rotary-wing aircraft to find a target quickly and hold it for as long as necessary. This improves mission effectiveness by enabling more accurate underwater target analysis and identification.”

In April, the MVASP system was employed on Aurora aircraft as part of Exercise Joint Warrior, a two-week exercise held twice each year by forces from the United Kingdom, the United States, Denmark, Norway, France, Germany, the Netherlands and Canada. The system’s capabilities were again demonstrated in August when Aurora aircraft took part in Rim of the Pacific Exercise (RIMPAC) 2012, the world’s largest international maritime warfare exercise held biennially by the United States with Australia, New Zealand, the United Kingdom, Canada and other Pacific Rim nations.

The MVASP provides concurrent acoustic processing for up to 32 sonobuoys. It can process information from any sonobuoy in fleet use today and is designed to support any mix of analog, digital, passive or active acoustic data. The MVASP features an intuitive operator interface and advanced tools that reduce operator workload while increasing situational awareness.

The intuitive energy map allows operators to quickly detect, localize and track the source of acoustic energy on a tactical display. Long detection ranges capable with the system enable operators to detect potential threats over greater distances. In addition, the embedded trainer makes it easier for operators to build their expertise with the system’s features and functions and improve their skills when it is not being used for missions.

General Dynamics Canada is part of General Dynamics C4 Systems, a business unit of General Dynamics (NYSE: GD). For information about General Dynamics Canada please go to www.gdcanada.com.

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General Dynamics Acquires Open Kernel Labs, Inc. — Press Release

FALLS CHURCH, Va., Sept. 10, 2012 /PRNewswire/ — General Dynamics (NYSE: GD) has acquired Open Kernel Labs, Inc. (OK Labs), expanding its capabilities as a provider of secure mobile devices for public safety, civilian, military and commercial customers as well as in-vehicle infotainment systems (IVI) for the commercial market. OK Labs, a Chicago-based, privately held corporation, is a leading provider of virtualization software for securing wireless communications, applications and content for mobile devices and automotive in-vehicle infotainment systems. The value of the cash transaction has not been disclosed.

OK Labs will become part of General Dynamics Broadband, a subsidiary of General Dynamics C4 Systems. This transaction enhances General Dynamics’ ability to meet growing government and military needs for secure computing on commercial handheld devices.

OK Labs’ “Defense-Grade” solutions for commercial devices enable secure separation of corporate data and applications from a user’s personal data stored or accessed on the same device. This feature broadens General Dynamics’ range of device offerings in the expanding public-safety broadband market and mobile device markets, and complements General Dynamics’ 40-year history of providing encryption technology to protect voice and data communications classified up to the Top Secret level.

“Government and corporate CIOs want the advantages of today’s commercial mobile devices without having to sacrifice the integrity and security of their networks,” said Chris Marzilli, president of General Dynamics C4 Systems. “OK Labs’ market-leading expertise in implementing security on commercial devices delivers ease of use and reduced cost to customers.”

OK Labs’ software is deployed on more than 1.6 billion government and commercial devices worldwide. Their technology supports a “bring-your-own-device” environment, allowing smart phones and other portable computing devices to be securely used for personal and business applications simultaneously. OK Labs’ solutions also make it easier for engineers to design, deploy and maintain software for these platforms.

OK Labs also provides automotive virtualization solutions by enabling the separation of dashboard applications (multimedia, infotainment) from core automotive functions without compromising safety, security or reliability.

More information about General Dynamics Broadband is available at www.gd-broadband.com.

General Dynamics C4 Systems (www.gdc4s.com) designs, manufacturers and delivers trusted and secure communications systems, command and control systems and operational hardware to customers within the U.S. Department of Defense, federal and civilian agencies, the intelligence community and international customers.

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Navistar Decides Not To Go Ahead with JLTV Protest

It is now being reported that Navistar (NAV) will not pursue its protest of the JLTV EMD contracts awarded almost two weeks ago. They did this after Labor Day.

The three Engineering, Manufacturing and Development (EMD) contracts were awarded three weeks ago. They were given to AM General, Lockheed Martin (LMT) and Oshkosh. The Navistar and General Dynamics (GD) proposals did not win.

Navistar had protested right at the end of the window to do so and after receiving their debrief from the Army. By doing this it placed the execution of the contracts on hold until the protest was resolved.

It looks like Navistar filed the protest to make sure they hit the window. After reviewing more information they decided to withdraw it. There has still been no indications that GD will go ahead with one.

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General Dynamics Awarded $176 Million Contract from U.S. Coast Guard for Support of the Rescue 21 System — Press Release

Contract provides for the system maintenance and related management services needed to keep the life-saving Rescue 21 system operational and technically current.

TAUNTON, Mass., May 3, 2012 /PRNewswire/ — General Dynamics C4 Systems, a business unit of General Dynamics (NYSE: GD), has been awarded a contract by the U.S. Coast Guard to provide ongoing sustainment services for the national Rescue 21 search and rescue system. General Dynamics, the prime contractor for the system’s design, development and deployment, will continue to provide field service personnel, technical support and maintenance of the system. Rescue 21 currently comprises 232 fixed towers and related facilities that enable the Coast Guard to monitor the nation’s coastline and inland waterways; it also serves as the U.S. Department of Homeland Security’s first nationwide command, control and communications network. The four-year contract has a total potential value of $176 million if all options are exercised.

“The Rescue 21 system’s 232 fixed towers have enabled life-saving assistance for countless boaters from Seattle to Key West to Massachusetts and many points in between,” said Chris Marzilli, president of General Dynamics C4 Systems. “With this award we will continue our collaboration and support of the Coast Guard’s Rescue 21 system and its expanding role within the Department of Homeland Security.”

The Rescue 21 system will be a network of 32 Coast Guard sector command centers, 167 stations and more than 260 fixed towers located along U.S. waterways and the shores of the Great Lakes, Hawaii, Guam, the U.S. Virgin Islands and Puerto Rico. Using advanced direction-finding technologies and digital communications, the Coast Guard rapidly and efficiently responds to emergency calls from mariners while coordinating with federal, state and local law enforcement and first responders. The system also supports the Coast Guard’s homeland security missions that include drug interdiction, defense readiness, marine environmental protection and law enforcement.

More information on the Rescue 21 system and border security solutions by General Dynamics C4 Systems is available online at www.gdc4s.com/Rescue21.

Additional information is available online about General Dynamics C4 Systems at www.gdc4s.com.

More information about General Dynamics is available at www.generaldynamics.com.

SOURCE General Dynamics C4 Systems

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An Update on GD’s Recent Moves – Seeking Alpha

Here is an exclusive article I wrote for Seeking Alpha on some moves General Dynamics (GD) has made to adjust to current market conditions. The post may be found here.

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General Dynamics Brings New Work to South Carolina — Press Release

General Dynamics Brings New Work to South Carolina

STERLING HEIGHTS, Mich., Jan. 10, 2012 /PRNewswire/ — General Dynamics Land Systems announced today that the newly acquired Force Protection manufacturing facility in Ladson, S.C., will install additional combat-related equipment on 292 Double-V Hull Strykers to be deployed to Afghanistan.

The equipment provides combat capabilities to the vehicles in preparation for Operation Enduring Freedom (OEF) deployment. It includes additional communication, protection and situational-awareness enablers for the warfighter.

The $10 million in new work begins in March 2012 and leverages the skills of mechanics, supply professionals and management. Approximately 45 jobs will be created for the work, which is expected to be completed by February of 2013.

General Dynamics (NYSE: GD) completed its acquisition in December 2011 of Force Protection, Inc., a provider of blast- and ballistic-protected platforms that support the armed forces of the United States and its allies. The transaction, valued at approximately $360 million, was announced on November 7 and is expected to be accretive to General Dynamics’ earnings in 2012. Force Protection is part of General Dynamics Land Systems.

General Dynamics Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles, offering a spectrum of design, production and lifecycle support to customers worldwide. Its portfolio of vehicle platforms includes the Stryker wheeled combat vehicle, the Abrams main battle tank and the MRAP class of tactical vehicles. The company employs world-class manufacturing and systems-integration processes to develop vehicles designed to meet current and future ground-combat requirements.

More information about General Dynamics is available at www.generaldynamics.com.

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SAIC to Support Homeland Security Move

Just like the Department of Defense has gone through with its several Base Realignment and Closure (BRAC) rounds the Department of Homeland Security (DHS) is also moving. This time after a decade in existence to a new, permanent headquarters in the Washington D.C. area. Currently the DHS is in several different buildings scattered around the capital. The DHS move to the two new complexes of buildings will take several months, involve 22 agencies and requires millions of dollars in support.

SAIC (SAIC) has been able to earn a sub-contract from the prime supporting the move, General Dynamics (GD), worth over $90 million. This would be if all seven option years are exercised. The contract will help in establishing the necessary IT infrastructure for the complex.

The BRAC moves allowed niche contractors to gain a great deal of business in construction, IT support and physically accounting for and moving equipment. GD and SAIC will be doing the same for the DHS.

GD total contract has a value that could reach almost $900 million.

The SAIC IT contract also has the potential to lead to bigger and better contracts providing IT and other support after the move is complete and the DHS settled in it’s new headquarters.

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General Dynamics Wins DHS IT Contract

After a lengthy protest and a new contest General Dynamics (GD) was able to win an IT support contract with the Department of Homeland Security (DHS). The company will support the building of the agency’s new headquarters and the move and integration of its employees into the facility.

Total value of the award could be up to $876 million as it also covers some time of dedicated support to the DHS. The original contract, though, won by Northrop Grumman (NOC) was much larger, lasting ten years and potentially worth over $2 billion.

After the award to Northrop late last year several of the losing bidders protested. The Government Accountability Office (GAO) upheld the protests and decided that a new contract should be awarded. This led to a new source selection process this spring with Northrop being the winner.

The new contract is much smaller as it was decided to de-scope the work and also eliminate many of the years of support after completion of the move. This means that in a few years there will be another contest to do that work and offers hope to Northrop that they can win that to counter the loss of the original contract.

The Federal Government stills has a hard time doing major IT work in-house and relies on large contracts such as this to carry out that work. There has been much discussion of the best way to move this work within the civil service but it has often foundered on how to integrate IT pay scales into the more rigid GS pay system. IT as illustrated does remain a significant contract cost for all parts of the Federal government as no matter what work they do from buying weapons to processing taxes they need IT support.

This area will remain a major market for the near future.

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Lockheed Martin Facility Planned to be Closed Wins Navy Work

As companies prepare for what is forecast to be cuts and reductions in the U.S. defense spending they have begun to look at eliminating overhead. They are also under pressure from the Defense Department to lower their costs and be more efficient. This has led to plans for layoffs and the elimination and consolidation of facilities.

Both Lockheed Martin (LMT) and General Dynamics (GD) recently announced major restructuring of their work force which includes the loss of several hundred jobs each. They have also begun the process of closing offices as work their ends or moving it to other locations. One place that will see its local Lockheed facility closed is Eagan, MN.

Even though the company was just awarded a contract by the Navy to manufacture and install upgraded combat systems for existing submarine with the potential to be worth over $750 million with some of the work being done in Eagan the plan is still to realign that office. The contract despite its value is scheduled to be complete by the middle of next year.

While the Eagan office is being closed many of the jobs that are there will be kept but at different Lockheed facilities. The plant had at one time almost 3,000 employees but is now below 1,000. At least 250 of those positions will be eliminated with the balance being moved elsewhere.

The U.S. defense spending has often gone through boom-and-bust periods which has led to many other cities facing situations like Eagan where a large employer can slowly disappear as requirements change or systems reach the end of their production life. It can be quite harrowing for a community to see a major jobs provider go and unless the company is able to attract further work. Eagan, MN unfortunately is facing that situation as the U.S. looks at reducing total defense spending.

Photo from Official U.S. Navy Imagery Flickr photostream.

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General Dynamics to Acquire Fortress Technologies, Inc.– Press Release

June 15, 2011 by · Comment
Filed under: Business Line, Companies, Editorial, IT, logistics 

General Dynamics to Acquire Fortress Technologies, Inc.

FALLS CHURCH, Va., June 14, 2011 /PRNewswire/ — General Dynamics (NYSE: GD) announced today that it has entered into a definitive agreement to acquire Fortress Technologies, Inc., a provider of secure wireless networking equipment for the U.S. military and other government customers. The value of the cash transaction, which is expected to be accretive to General Dynamics’ earnings beginning in 2012, has not been disclosed.

The acquisition has been approved by the boards of directors of both companies and is subject to normal regulatory review. General Dynamics expects the transaction to be completed in the third quarter of 2011.

Fortress Technologies produces a portfolio of mesh networking products that enable secure wireless local area network (LAN) capabilities for battlefield logistics, convoy, command post and soldier applications. Built on commercially available technologies, Fortress Technologies’ ruggedized products improve soldiers’ combat effectiveness and survivability by increasing their access to information. The company is based in Westford, Mass., and has approximately 70 employees.

Fortress Technologies will be managed by General Dynamics C4 Systems, which is based in Scottsdale, Ariz. General Dynamics C4 Systems designs, manufactures and delivers trusted and secure communications systems, command and control systems and operational hardware to customers within the U.S. Department of Defense, the intelligence community and federal civilian agencies, and to international customers.

“Fortress Technologies successfully delivers commercially developed, commercially priced secure
Wi-Fi/WiMAX networking capabilities that extend the reach of our current broadband tactical-internet offerings,” said Chris Marzilli, president of General Dynamics C4 Systems. “Our high-priority military and civilian users require cyber-protected access to 4G internet services. Fortress effectively provides them with highly secure ‘hot spots’ downrange over the last tactical mile.”

“This acquisition will enhance General Dynamics’ ability to meet the growing tactical-communications requirements of global defense and civilian agencies, bringing new value to our advanced networking solutions. Fortress Technologies also will continue its current model of selling products to other DoD prime contractors and integrators,” Marzilli said.

Fortress Technologies is the wireless-technology provider for the Combat Service Support Automated Information System Interface (CAISI) system, the Army’s only certified tactical wireless LAN. Since 2001, Fortress Technologies has delivered over 55,000 units as a subcontractor on this program. Designed for the transport of logistics data, the CAISI systems connect brigades, battalions and companies increasing the efficiency of the Army logistics systems that support soldiers in the field. The company provides technology across the federal market to customers including the U.S. Marine Corps, the Navy, the National Guard, combatant commands and the Department of Energy.

The company is also a member of the EDGE Innovation Network sponsored by General Dynamics C4 Systems. The EDGE is a collaborative, open-environment initiative enabling industry and academia, with government input, to work together to enhance the delivery cycle of new technologies and innovative capabilities to first responders.

More information about Fortress Technologies is available at www.fortresstech.com.

More information about General Dynamics C4 Systems is available at www.gdc4s.com.

More information about General Dynamics is available at www.gd.com.

SOURCE General Dynamics

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SKYDEX, General Dynamics Sign Multi-Million-Dollar Purchase Order For Blast-Limited Decking on New Stryker DVH Vehicles for Afghanistan

CENTENNIAL, Colo.--(BUSINESS WIRE)--SKYDEX signs multi-million dollar deal with General Dynamics to install its blast mitigating flooring into their vehicles.

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General Dynamics’ Small Caliber Ammunition Program Manufactures One Billion Rounds For U.S. Army — Press Release

General Dynamics’ Small Caliber Ammunition Program Manufactures One Billion Rounds For U.S. Army

Dynamics (NYSE: GD), has achieved a significant milestone in producing one billion rounds of ammunition in support of the U.S. Army’s Second Source Small Caliber Ammunition program.

General Dynamics was awarded a five-year contract by the Army in August 2005 to produce various types of 5.56mm, 7.62mm and .50 caliber ammunition. The contract established General Dynamics as a second-source prime contractor overseeing a consortium of worldwide small-caliber ammunition producers.

Managed by the U.S. Army Project Manager – Maneuver Ammunition Systems, the Small Caliber Second Source program was established to address the critical demand for small-caliber ammunition during Operations Enduring Freedom and Iraqi Freedom.

“This is a significant milestone for General Dynamics and our U.S. Army customer. The Small Caliber Second Source program served a vital role in meeting the urgent needs of our warfighters, and it continues to enable the combat readiness of our U.S. Armed Forces,” said Steve Torma, vice president of small-
caliber ammunition.

For more information about General Dynamics Ordnance and Tactical Systems, please visit www.gd-ots.com.

More information about General Dynamics is available online at www.generaldynamics.com.

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Thales Australia and General Dynamics Ordnance and Tactical Systems announce long-term strategic teaming agreement — Press Release

Thales Australia and General Dynamics Ordnance and Tactical Systems announce long-term strategic teaming agreement

Ft. Lauderdale, Fla. — Thales Australia and U.S.-based General Dynamics Ordnance and Tactical Systems have signed a long-term strategic teaming agreement to cooperate in the Australian ordnance market.

The agreement formalizes many years of close cooperation between Thales and General Dynamics, cements Thales’s ability to deliver domestic munitions products to the Australian Department of Defence, and enables a refreshed approach to the munitions business in Australia, including the potential for greater exports.

Under the 10-year agreement, General Dynamics will deliver significant technology transfer to Thales in Australia, while Thales will leverage its U.S. partner’s expertise to focus on delivering maximum value to Australian Defence through its existing munitions contracts.

Chris Jenkins, Thales Australia’s CEO, said: “This teaming agreement reinforces both our commitment to modernizing the products on offer in Australia, and our dedication to delivering savings and greater value for money to the customer under Australia’s Strategic Reform Program, while bringing new benefits to the Australian Defence Force.”

Michael Wilson, President of General Dynamics Ordnance and Tactical Systems, said: “Thales and General Dynamics already have a strong working history. This agreement will see increasingly close cooperation between the companies, and is a significant extension to our current arrangements for the Australian, European and U.S. markets.”

About Thales

Thales is a global technology leader for the Defence & Security and the Aerospace & Transport markets. In 2009, the company generated revenues of €12.9 billion (equivalent of AUD 23 billion) with 68,000 employees in 50 countries. With its 22,500 engineers and researchers, Thales has a unique capability to design, develop and deploy equipment, systems and services that meet the most complex security requirements. Thales has an exceptional international footprint, with operations around the world working with customers as local partners. www.thalesgroup.com

Thales Australia is a trusted partner of the Australian Defence Force and is also present in commercial sectors ranging from air traffic management to security systems and services. Employing around 3,500 people in over 35 sites across the country, Thales Australia recorded revenues of more than AUD1 billion in 2009.

About General Dynamic Ordnance and Tactical Systems

General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), is a world leader in the manufacture of large-, medium- and small-caliber direct and indirect-fire munitions, shaped charge warheads and propellants. It also manufactures precision metal components, and aerostructures in support of the tactical missile industry. More information on General Dynamics Ordnance and Tactical is available online at www.gd-ots.com.

General Dynamics, headquartered in Falls Church, Va., employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about General Dynamics is available online at www.generaldynamics.com.

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General Dynamics Places 100,000 th Inventory Mark on U.S. Marine Corps Equipment — Press Release

General Dynamics Places 100,000th Inventory Mark on U.S. Marine Corps Equipment

FAIRFAX, Va. – General Dynamics Information Technology, a business unit of General Dynamics (NYSE: GD), celebrated placement of its 100,000th inventory mark in support of the U.S. Marine Corps’ Unique Item Identification (IUID) program at a ceremony on Tuesday, February 15, 2011.

The ceremony was held at the Marine Corps Base Quantico with key IUID program executives from General Dynamics and the Marine Corps Systems Command present. The team commemorated the occasion by placing a special IUID tag on a Medium Tactical Vehicle Replacement (MTVR) cargo
vehicle.

“With General Dynamics’s assistance, the U.S. Marine Corps Systems Command can more accurately track their logistical activity around the world, ensuring optimal execution of military operations. With 100,000 items marked so far, the Marine Corps will have comprehensive information about a piece of equipment at their fingertips,” said Kenneth Slaght, vice president and general manager of General Dynamics Information Technology’s Naval IT Solutions sector.

General Dynamics was awarded a contract in April 2008 to provide the Marine Corps Systems Command with general and scientific support for IUID marking of legacy equipment, assemblies and subassemblies. The company assists with determining the end items for marking, engineering analysis for item-specific location and technical data support. The company creates IUID tags that are embedded with detailed information about the item and bar codes to track and maintain logistical inventory.

For more information about General Dynamics Information Technology, please visit www.gdit.com.

More information about General Dynamics is available online at www.generaldynamics.com.

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General Dynamics Partners with TIBCO Software to Deliver Comprehensive HIPAA 5010 and ICD-10 Transition Solution — Press Release

General Dynamics Partners with TIBCO Software to Deliver Comprehensive HIPAA 5010 and ICD-10 Transition Solution

FAIRFAX, Va. – General Dynamics Information Technology has formed a new partnership with TIBCO Software Inc. to help customers with their HIPAA 5010 and International Classification of Diseases, 10th Revision (ICD-10) testing and conversion strategy. TIBCO will now incorporate General Dynamics’ ViPS’ NAV-10 technology into selected TIBCO® Foresight™ products.

The NAV-10 Code Translation Suite is an integral component of the General Dynamics’ ICD-10 Readiness Solutions software. The software provides organizations with a clear understanding of the impacts and costs associated with the mandated transition to ICD-10. It offers enterprise-wide migration solutions, including analysis and determination tools, which will save healthcare organizations time and money.

“By partnering with TIBCO, General Dynamics will provide customers with a superior capability to help them meet the new ICD-10 requirement cost effectively and on schedule,” said Art Lehrer, vice president and general manager of General Dynamics Information Technology’s Health IT Solutions sector. “The NAV-10 system is a quality-driven solution that tailors to a customer’s business model to help them make informed decisions based on their own data.”

The U.S. Healthcare industry faces a major challenge in preparing for the ICD-10 implementation on October 13, 2013, as mandated by Centers for Medicare and Medicaid (CMS). The transition from ICD-9 to ICD-10 involves significant changes to the information systems and processes that support a healthcare organization’s business operations. During this transition, providers need to ensure they are compensated for services rendered and payers need to comprehend how to adjust their adjudicated systems and contracts with providers. ViPS’ NAV-10 Code Translation Suite helps public and private healthcare organizations prepare for this 2013 compliance.

Most of the healthcare industry must comply with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) 5010 by January 1, 2012, with some smaller organizations having until January 1, 2013. HIPAA established a set of standards for electronic transactions for health care data including claims, payments, eligibility, enrollment and referrals and will serve as a precursor to the ICD-10 transition.

For more information about General Dynamics Information Technology, please visit www.gdit.com.

General Dynamics Information Technology is a business unit of General Dynamics (NYSE: GD). More information about General Dynamics is available online at www.gd.com.

TIBCO and Foresight are trademarks or registered trademarks of TIBCO Software Inc. or its subsidiaries in the United States and/or other countries. All other product and company names and marks mentioned in this document are the property of their respective owners and are mentioned for identification purposes only.

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BAE Systems Awarded over ZAR900 Million RG31 MRAP Contract for Readiness and Sustainment

JOHANNESBURG--(BUSINESS WIRE)--Through its teaming agreement with General Dynamics Land Systems Canada (GDLS-C), BAE Systems, Land Systems South Africa won a contract worth more than ZAR900 million ($130 million) for survivability and mobility upgrades to its RG31 Mine Resistant Ambush Protected (MRAP) vehicles. The upgrade kits will further enhance the survivability and mobility of the battle-proven RG31 vehicles. As part of the modernization work in South Africa, a powerpack providing higher p

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General Dynamics Reports Strong Performance for Fourth Quarter 2010 — Press Release

General Dynamics Reports Strong Performance for Fourth Quarter 2010

• EPS from continuing operations grows 21 percent

• Cash generation exceeds earnings from continuing operations

• Management provides 2011 full-year EPS guidance

FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today reported 2010 fourth-quarter earnings from continuing operations of $729 million, or $1.91 per share on a fully diluted basis, compared to 2009 fourth-quarter earnings from continuing operations of $618 million, or $1.58 per share fully diluted. Full-year 2010 earnings from continuing operations were $2.63 billion, or $6.82 per share on a fully diluted basis, compared to $2.41 billion and $6.20 per share, respectively, for 2009. Revenue was $8.6 billion in the fourth quarter and $32.5 billion for the full year.

Margins

Company-wide operating margins increased to 12.5 percent for the fourth quarter, led by a 250-basis-point improvement in the company’s Aerospace sector. Margins also increased in the Marine Systems and Information Systems and Technology businesses and remained steady in Combat Systems.

Cash

Net cash provided by operating activities totaled $1.42 billion in the fourth quarter and $2.99 billion for the full year. Free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $1.27 billion in the quarter and $2.62 billion for the year. Free cash flow significantly exceeded earnings from continuing operations in the fourth quarter and was equal to earnings from continuing operations for the year.

Backlog

The company’s total backlog was $59.6 billion at the end of the year. The Aerospace group booked its largest order intake of the year, resulting in a $244 million increase in backlog over the third quarter. Significant domestic and international orders for vehicle production and improvements, ongoing ship design and development efforts, and combat mission-system integration work underscored the ongoing demand for many of the company’s key product and service offerings.

Estimated potential contract value, representing management’s estimate of the value of unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised contract options, increased to $21.8 billion at year-end 2010. Total potential contract value, the sum of all backlog components, was $81.3 billion at the end of the year.

“2010 was a good year for General Dynamics, marked by outstanding earnings growth, efficient cash conversion and focused execution across the company,” said Jay L. Johnson, chairman and chief executive officer. “Our businesses are well-positioned as we continue to provide mission-essential capabilities to our defense customers and capitalize on accelerating global business-jet demand.”

“Looking ahead, we expect 2011 earnings to be in the range of $7.00 to $7.10 per share, fully diluted,” Johnson said.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 90,000 people worldwide. The company is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. More information about the company is available on the Internet at www.generaldynamics.com.
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Germany Buys Protected Vehicles from GD

Due to the mine and Improvised Explosive Device (IED) threat that became so common in Iraq and Afghanistan many of the world’s military are equipping themselves with uparmored vehicles for most role and missions. The U.S. especially bought thousands of Mine Resistant Ambush Protected (MRAP) vehicles for engineering, troop transport and combat support roles. They also redesigned the ubiquitous HUMVEE light truck to carry more armor. Now as new vehicles are designed and acquired a level of armoring much beyond what was in the last generation is now expected.

It is because of this situation that General Dynamics (GD) was able to win a contract from Germany for a further 195 EAGLE vehicles in a contract worth over $160 million. This order brings the total of these vehicles bought for use by the German Army and police to almost six hundred.

The market for this type of vehicle has become bigger later as the U.S. plans to buy the Joint Light Tactical Vehicle (JLTV) and Australia and the U.K. to buy new light trucks. All will possess a level of armor and survivability design much higher then military systems of the past.

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More M2 Machingeguns for the U.S. Military

The U.S. Department of Defense has developed and bought many different weapon systems over the last seventy years. Some of these are high tech aircraft like the F-22 or the SR-71. They also include communication satellites at over a billion dollars a piece. Some weapons though are so well designed and effective that they remain in production and service for years. That is the situation with the venerable Browning M2 fifty caliber machine gun.

This weapon has served through World War II, Korea, Vietnam, the Cold War, Desert Storm and the fighting since 9/11. It has been used mounted on a tripod, vehicles, aircraft and ships. While the Army has developed a new system there are still tens of thousands of the weapons in use by the U.S. and across the world. General Dynamics (GD) is now the manufacturer for the weapon and have steadily received contracts for new guns, repair and parts.

The latest is a $73 million one to produce new weapons and modify existing systems. The majority of their work will be done at the GD facility in Saco, ME.

Some weapons are just so effective that there is no need to improve upon them or replace them. The M2 certainly falls into that category.

Photo courtesy of Casualty flickr photostream.

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LaBarge Awarded $3.5 Million Contract from General Dynamics for Aegis Weapon System

ST. LOUIS--(BUSINESS WIRE)--LaBarge continues work on the Aegis with $3.5 million contract from General Dynamics. LaBarge manufactures high-level electronic assemblies.

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