The larger contract goes to the company's General Dynamics Information Technology division, and it's a $23.2 million cost-plus-fixed-fee incrementally funded contract to continue supporting U.S. Air Force simulation, training, and experimentation programs. This contract runs through March 26, 2015.
The smaller but more interesting contract pays General Dynamics partner Austal USA $20 million to "assess engineering and production challenges and evaluate the cost and schedule risks from affordability efforts to reduce LCS acquisition and lifecycle costs." This contract mirrors a similar, but larger, award simultaneously issued to fellow Littoral Combat Ship-builder Lockheed Martin (NYSE:LMT). The Navy is hiring both companies to provide guidance on any potential downsides to efforts to cut costs on the LCS program, which is currently overbudget. This contract has a March 2014 complete date.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics and Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.