Defense Contractor General Dynamics Corporation (GD), through its unit General Dynamics Information Technology, received the Missile Defense Agency Engineering and Support Services (MiDAESS) contract to provide systems engineering and testing services to the Missile Defense Agency (MDA).
General Dynamics is among the five companies selected for the five-year contract. The contract has a $1.6 billion ceiling value for all awardees and no initial award value.
Under the contract, General Dynamics will compete for task orders to provide program management and planning, technical, engineering and general-level support as well as advisory and assistance services to the MDA’s Systems Engineering and Test organizations. These organizations plan and execute the engineering responsibilities for the Ballistic Missile Defense System (BMDS) and each of the geographically dispersed programs within MDA.
Members selected for the task orders, under the MiDAESS contract, will execute tasks in Fort Belvoir, Virginia; Huntsville, Alabama; Dahlgren, Virginia; Colorado Springs, Colorado; Fort Greely, Alaska; Vandenberg Air Force Base, California; Albuquerque, New Mexico; and Los Angeles Air Force Base, California.
MDA was created in 2002 aimed at developing a layered, integrated BMDS that will do away with all ranges of ballistic missiles by engaging them in all phases of flight.
Through the MiDAESS program MDA targets implementing national engineering and support services for the BMDS mission across the enterprise, enhance the sharing of BMD expertise and knowledge across the agency, centralize the acquisition of support-services manpower in a more efficient manner and reduce the agency overhead cost across the enterprise.
General Dynamics, headquartered in Falls Church, Virginia, is a market leader in business aviation; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and information systems and technologies. The company ranked as the fourth largest U.S. defense contractor in terms of revenue in fiscal 2009, after The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
General Dynamics’ Information Systems & Technology segment integrates secure communication systems and networks, as well as command, control and intelligence systems.
General Dynamics’ expertise in the BMDS systems engineering and test processes positions it well to quickly react to changing circumstances and customer requirements. This will in turn prove beneficial for the Missile Defense Agency to meet war-fighters’ needs.
During the third quarter earnings call, General Dynamics raised its full-year operating earnings for 2010 to the range of $6.70 to $6.75 per share from $6.60 to $6.65 per share, taking into consideration the robust performance during the third quarter.
The Zacks Consensus Estimates for fourth-quarter 2010, fiscal year 2010 and 2011 are $1.85 per share, $6.76 per share and $7.09 per share, respectively.
General Dynamics currently retains a Zacks #3 Rank (short-term Hold rating). We also maintain our ‘Neutral’ recommendation on the stock.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
Zacks Investment Research
