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U.S. Army and General Dynamics Ink Teaming Agreement

Links Anniston Army Depot and defense industry for worldwide fleet management

FT.LAUDERDALE, Fla. – The U.S. Army TACOM Life Cycle Management Command (LCMC), Program Executive Office Ground Combat Systems, Anniston Army Depot (ANAD) and General Dynamics Land Systems have signed an unprecedented teaming agreement on service and support of combat vehicles.

The agreement teams General Dynamics and Anniston [Alabama] Army Depot, the Army’s premier heavy maintenance facility, for support and service of the M1A1 and M1A2 Abrams tanks and Stryker eight-wheeled combat vehicles worldwide.

“Our overall strategy is to continuously improve the Abrams and Stryker fleets to ensure the warfighting readiness of our Soldiers while providing best value to the American people,” said Maj. Gen. Mike Lenaers, TACOM LCMC commanding general. “This joint strategy and integrated plan maintains core skills at both General Dynamics and Anniston Army Depot for continuous improvement and maintenance of both of these fleets.”

Details of the “Integrated Plan” for respective baseline work shares for the Abrams and Stryker fleets will be completed within sixty (60) days of the signing of the original Memorandum of Understanding (MOU).

For the Abrams tanks fleet, all parties agree that as a strategy, it is contemplated that General Dynamics, as the producer and supporter, shall provide to TACOM and ANAD materials, parts and services required to support any associated remanufacture and restoration efforts. Additionally, General Dynamics, as the producer and supporter of the Stryker Family of Vehicles, and the other parties of this MOU, shall develop a procurement and management workshare plan to determine the materials, parts and services required to support all associated remanufacture and restoration efforts.

Currently, there are other Public Private Partnering (P3) arrangements between General Dynamics and Anniston Army Depot that individually support the Abrams and Stryker programs.

“This new agreement, for the first time, will address all aspects of the manufacturing and overhaul programs and material handling for the two vehicle families by both the Army and General Dynamics,” said Kevin Fahey, Program Executive Officer Ground Combat Systems. “This agreement should ultimately result in the highest quality vehicle, at the lowest price, that builds upon the efficiencies of both parties.”

According to Colonel Alexander Raulerson, ANAD’s commander, “The signing of this MOU represents the continuing and long established partnerships between the depot and General Dynamics that ultimately provide the Soldier with the best possible equipment needed to carry out their assigned duties worldwide.”

"We are extremely excited about the potential of public and private partnerships in the defense sector,” said Mark Roualet, Senior Vice President, General Dynamics Land Systems. "Previous experience with the Abrams tank has allowed us and the depot to better plan workload requirements, created a better business climate for investments to improve repair capability and improved management of parts obsolescence."

Anniston Army Depot is the only Army depot capable of performing maintenance on both heavy and light-tracked combat vehicles and their components. Additionally, the depot is designated as the Center of Technical Excellence for the M1 Abrams tank fleet, and it is expected that such designation will soon be received for the Stryker. The depot, established in 1941, occupies more than 25 square miles and employs approximately 6,500 people (including tenant and contractor activities.)

In addition to its combat vehicle capabilities, including their associated subassemblies and components, the depot also performs maintenance on individual and crew-served weapons as well as land combat missiles and small arms.

The TACOM LCMC unites all of the Army organizations that focus on soldier and ground systems throughout the entire life cycle. The TACOM LCMC consists of the Integrated Logistics Support Center, the Acquisition Center, Program Executive Office Combat Support & Combat Service Support, Program Executive Office Ground Combat Systems, and Program Executive Office Soldier. The TACOM LCMC gets products to the Soldier faster, makes good products even better and minimizes lifecycle cost by integrating Army acquisition, logistics and technology responsibilities, authorities, and processes to enable a closer relationship among all the partner organizations that develop, acquire and sustain the capabilities provided by ground and soldier systems.

General Dynamics, headquartered in Falls Church, Virginia, employs approximately 72,200 people worldwide and had 2005 revenue of $21.2 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 - Wednesday, February 15, 2006
Press Contact: (586) 825-7930



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