General Dynamics (GD) Unit Wins $106.2M U.S. Navy Deal

General Dynamics Corporation’s GD unit, National Steel and Shipbuilding Co. (“NASSCO”), has won an undefinitized contract from the U.S. Navy for the procurement of long lead time material and engineering support for the Expeditionary Mobile Base 5. The contract has a potential value of $106.2 million. Contract work is expected to be complete by Mar 2017.

Per the deal, General Dynamics will procure ship sets of purchase specifications, supporting integrated propulsion, main diesel generator engines, propeller and shafting, integrated bridge electronics, centrifugal pumps, fuel and lube oil purifiers, and steering gear components. 

Based in the San Diego industrial area, NASSCO has been designing and building ships since 1960. It focuses on designing and building supplementary and support ships for the U.S. Navy, as well as oil tankers and dry cargo carriers for the commercial markets. NASSCO also specializes in providing repair services for the Navy’s global force.

In Mar, 16, NASSCO has jointly won another contract from the U.S. Navy to provide support services for amphibious warfare and surface combatant ships home-ported in the Port of San Diego. The indefinite delivery, indefinite quantity contract has a total potential value of $1.32 billion. The contract was also awarded to BAE Systems Plc BAESY and Continental Maritime of San Diego.

General Dynamics has maintained a longstanding strategic alliance with the U.S. Department of Defense. The company is known for maintaining product and service standards, as well as timely deliveries.

Zacks Rank & Key Picks

Currently General Dynamics carries a Zacks Rank #3 (Hold).

A couple of better-ranked stocks in the same space are HEICO Corporation HEI and CAE Inc. CAE, both carrying a Zacks Rank #2 (Buy).

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