General Dynamics Awarded Orders Totaling $56 Million for Medium-Caliber Ammunition
With All Options Exercised, Potential Value Could Exceed $80 Million
ST. PETERSBURG, Fla. – General Dynamics Ordnance and Tactical Systems, a business unit of General Dynamics (NYSE: GD), announced today that the U.S. Army Field Support Command, Rock Island, Ill., has awarded the company four medium-caliber ammunition contracts valued at more than $56 million. Work on these contracts will be performed at the company’s Marion, Ill., facility.
The first award is a $9.2 million firm-fixed-price contract for the manufacture of 25mm M793 TP-T (target practice-traced) and 25mm M910 TPDS-T (target practice discarding sabot-traced) cartridges. General Dynamics Ordnance and Tactical Systems is the systems integrator and one of only two U.S. manufacturers of M793 cartridges. The M793 is part of a family of 25mm Bushmaster munitions used on the U.S. Army’s M2/M3 Bradley Fighting Vehicle and the U.S. Marine Corps’ Light Armored Vehicle. The Marion facility has produced more than 30 million rounds of this family of ammunition. Work on this contract is expected to be completed in July 2006. With all options exercised, the total value of this contract could exceed $17 million.
The second award is an $11.8 million firm-fixed price contract for M788 30mm target practice rounds and M848 30mm dummy ammunition. These rounds are fired from the Apache attack helicopter. With all options exercised, the total value of this contract could exceed $22 million.
The third contract award, for $32.5 million, is for the production of 30mm PGU 15/B TP rounds. Used primarily by the U.S. Air Force A-10 Warthog, the PGU 15/B TP round is used to train aircrews in the use of the GAU-8/A Gatling gun. This weapon system and its high performance family of ammunition has been proven effective against many targets, including tanks, armored and light vehicles.
Finally, the company was awarded a $3 million contract to produce 25mm PGU-25/U ammunition. The tactical PGU-25/U round is fired from the U. S. Navy’s AV-8B Harrier. If all options are exercised, the total value of this contract could exceed $8.4 million.
Michael S. Wilson, president of General Dynamics Ordnance and Tactical Systems, said, “We are most pleased to continue as a major U.S. producer of all medium-caliber ammunition for our fighting forces. Securing the major share of these production requirements reflects our continued commitment to manufacturing excellence, and affordability.”
General Dynamics Ordnance and Tactical Systems is a world leader in the manufacture of large- and medium-caliber direct and indirect-fire munitions, bomb bodies and Ball Powder® propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 70,100 people worldwide and had 2004 revenue of $19.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.
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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 - Friday, July 8, 2005
Press Contact: (727) 578-8144
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