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General Dynamics Bids on Danish Military Contract

For more than a decade, Denmark has talked about upgrading its fleet of aging M113 armored personnel carriers. Today, it may be prepared to do something about it.

Responding to a request for proposals issued in June, some eight defense contractors have submitted bids to outfit the Danish Army with new rides. According to, these bidders include BAE Systems Hagglunds, FFG Flensburger, Rheinmetall Landsysteme, and the Santa Barbara unit of General Dynamics' (NYSE: GD  ) European Land Systems subsidiary, each of which is offering to sell the Danes tracked armored vehicles. ARTEC, Nexter, Patria, and General Dynamics' Mowag subsidiary have all submitted bids to provide wheeled vehicles.

Thus, General Dynamics is both the only U.S. bidder for the contract, and also the only contractor offering the Danes both wheeled and tracked variants to choose from -- potentially doubling its chances of winning the contract.

The RFP called for base level of interest of 360 vehicles. However, the contract when signed may eventually call for as few as 206 vehicles to be built, or as many as 450. The contract's value has not been established, but a similar contract awarded by Sweden last year valued similar armored vehicles at approximately $3.4 million apiece. Thus, the current contract is probably worth anywhere from approximately $700 million to perhaps $1.5 billion in total.

 Vehicle trials will begin in March 2013, with a contract award expected before the end of 2013.


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