Zacks_Analysts' Blog : GD Wins Army Training Contract - Analyst Blog

General Dynamics Information Technology, a business wing of General Dynamics Corporation (GD), received an indefinite delivery, indefinite quantity contract for the U.S. Army's Combined Arms Center (CAC) Fort Leavenworth Support Services program.

The contract, spanning over five years, would amount to $260 million if all options are exercised.

Under this contract, General Dynamics will support CAC and other customers throughout the Training and Doctrine Command (TRADOC) of the U.S. Army for key Army training programs across 18 broad functional areas. These include leader development, organizational and combat development, doctrine development, mission command support and educational support, data collection and analysis, mapping and terrain analysis, training and simulation development, information technology and exercise support and military research.

The U.S. Army Combined Arms Center provides leadership and supervision for leader development and professional military and civilian education, institutional training, functional training, and battle command and other specified areas that the TRADOC Commander designates. Overall, the task is done to support the development of a relevant and ready ground force to support joint, interagency and multinational operations anywhere in the world.

Recently, General Dynamics achieved the one billion mark of ammunition production for the U.S. Army's Second Source Small Caliber Ammunition program.

General Dynamics was the fourth largest U.S. defense contractor in terms of revenue in fiscal 2010, after The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC). General Dynamics’ revenue exposure is spread over a broad portfolio of products and services that helps in keeping the overall growth momentum steady. However, the company faces the threat of budget cuts, steadily falling order backlog and risks related to the execution of key projects. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Based in Falls Church, Virginia, General Dynamics is one of the leading companies in business aviation, information systems and technologies, shipbuilding and marine systems, and land and amphibious combat systems, as well as armaments and munitions.