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GD Wins IT Upgrade Contract

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General Dynamics Corp. (GD) received a U.S. Air Force contract to upgrade the base-level network security boundary support to Air Force’s Life Cycle Management Center located at every global Air Force and Air National Guard station.

The tasks related to the contract will be carried out in Needham, Mass., and Oklahoma City, OK, as well as in various Air Force locations worldwide.

The order was handed out under the Network-Centric Solutions (:NETCENTS) contract, which is a multiple-award, indefinite delivery, indefinite quantity contract that was awarded to General Dynamics in Sep 2004. The current order is worth $25.3 million over two years provided all options are exercised.

The contract specifics include offering support to Enclave Non-classified Internet Protocol Router Network Firewall and Automated Security Incident Management Sustainment (:ENFAAS) program. This requires network management modernization at the Air Force Integrated Network.

Operations and Security Centers and Air Force Computer Emergency Response Team sites.

The secondary services involve extending support to Air Force Network (AFNet) security requirements and enhance visibility into network traffic across the Air Force Non-classified Internet Protocol Router Network (NIPRNet).  

With constantly emerging defense threats, one of the country’s key focus will be to strengthen its security competencies worldwide. This explains the unchanged allocation of $12 billion in the Science and Technology program in the 2014 budget.

In Oct 2013, General Dynamics secured a $16 million contract to provide information technology management services in Afghanistan to support the U.S. Army Corps of Engineers. IT-related contract flows will continue to come in, in the near term, which will boost the company’s order book. The division represents 34% of General Dynamics’ overall revenue.

Currently, the company holds a Zacks Rank #2 (Buy). Other defense operators looking good at the moment include Zacks Ranked #1 (Strong Buy) Raytheon Co. (RTN) and Zacks Ranked #2 Lockheed Martin Corp. (LMT) and The Boeing Co. (BA).

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