General Dynamics Corporation‘s (GD) declared that its unit General Dynamics Information Technology has received a contract from the U.S. General Services Administration (‘GSA’) to carry out the relocation of U.S. Department of Homeland Security’s headquarters. The duration of the contract is seven years and worth $876 million, if all options are exercised by the parties.
General Dynamics will team up with GSA and participate in the integration of multiple Department of Homeland Security sites in Washington D.C. into a single campus, there by lowering the cost of operations. The company will also plan, develop and install entirely new IT infrastructure in the new campus. To ensure continuous operations of the new IT system, the company will also test, manage and maintain the IT enterprise.
General Dynamics together with General Dynamics Advanced Information Systems, General Dynamics C4 Systems, Science Applications International Corporation (SAIC) in Mclean, Virginia, and another 35 teammates have pledged to carry out the relocation work of the Department of Homeland Security’s headquarters.
General Dynamics Information Technology has been receiving contracts from the Defense Departments on a consistent basis. One of the major contracts received in April worth $2.5 billion was from S. Army Forces Command.
As per the contract the company will carry out planning, training, operations, mobilization and deployment, airfield operations, transformation, modeling and simulation, flight operations and force protection.
The Information Technology unit belongs to the Information Systems and Technology group of General Dynamics. This group contributed 36.1% of the company’s total revenue in the first quarter and the total funded backlog of this group at the end of the quarter stood at $9.7 billion.
We believe selection of General Dynamics for this project makes sense as the company has expertise and knowledge of executing big IT infrastructure projects and carry out relocation work.
The company is entrusted with the design and implementations of new IT infrastructure in the newly relocated headquarter of the Department of Defense — The Mark Center facility in Alexandria, Virginia. The company is supporting the U.S. Army’s Walter Reed Army Medical Center’s transition to the Bethesda National Naval Medical Center and Fort Belvoir, Virginia.
General Dynamics currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain a Neutral rating on the stock over the long term. The net margin of the company fared better than its peers The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Textron Inc. (TXT) in the trailing twelve months.
Falls Church, Virginia-based General Dynamics, with its units, operates in business aviation, land and expeditionary combat systems, armaments and munitions, shipbuilding and marine systems, and information systems and technologies
