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General Dynamics Wins Major U.S. Army Multi-Year Demilitarization Contract

FALLS CHURCH, Va. -- General Dynamics Ordnance Systems today was awarded a $34.8 million contract for the first year of a five-year demilitarization contract by the U.S. Army Industrial Operations Command (IOC). This is the largest contract ever awarded in the United States for the demilitarization of conventional ammunition and is the first comprehensive Department of Defense effort to demilitarize conventional ammunition that either has reached the end of its service life or cannot be used by current weapons systems.

Under this award, General Dynamics Ordnance Systems is one of two prime contractors selected to demilitarize more than 37 million rounds comprising 144 different types of ammunition, ranging from 20mm bullets to 2,000-lb. bombs. Approximately 12 million pounds of bulk propellant will also be demilitarized. Under the terms of this contract, General Dynamics Ordnance Systems and the other contractor, PB NAMMO Demil, LLC, will evenly split the first year's contract award. Contracts for the remaining four years could also be evenly split or be divided as much as 70 percent/30 percent, based on contractor performance and lowest cost to the government.

Ammunition demilitarization is a process involving the separation of the munition elements, such as explosives and metal parts. Usable components are reclaimed for reuse, while the remaining elements are rendered safe for disposal.

"This is a major win for General Dynamics and firmly establishes our leadership position in the growing demil business for additional DOD and international efforts," said Linda Hudson, president of General Dynamics Armament Systems, the parent company of General Dynamics Ordnance Systems. "General Dynamics has put together a global team of subcontractors with unequalled experience to safely conduct this vast demil effort."

The company’s U.S. team includes Arrow Tech of South Burlington, Vt., HITECH of Camden, Ark., ICI of Joplin, Mo., Primex of Marion, Ill., TPL of Albuquerque, N.M., EASE of Salt Lake City, Utah, General Atomics of San Diego, Calif., and Alliant Techsystems of Hopkins, Minn. The international subcontractor is EBV of Vogelgesang, Germany. Three of the team members are highly qualified small businesses, which are assured of performing at least 20 percent of the total demil contract effort. As prime contractor, General Dynamics Ordnance Systems has significant technical resources to manage and coordinate all subcontractor efforts.

General Dynamics Ordnance Systems is a subsidiary of General Dynamics Armament Systems, Burlington Vermont. The parent company, General Dynamics (NYSE: GD), is based in Falls Church, Virginia. General Dynamics supplies sophisticated defense systems to the United States and its allies. The company employs more than 31,000 people and had 1998 sales of $5 billion.


Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Wednesday, May 12, 1999
Press Contact: (703) 876-3190

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