General Dynamics "Hydra" Contract Grows Past $1 Billion Mark

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General Dynamics (NYSE: GD  )  won a $67.4 million Pentagon contract Thursday, the Pentagon has just confirmed. Curiously, though, the General Dynamics division that won the award may soon not exist -- at least not independently.

Last week, as you may recall, General Dynamics announced plans to merge its Armament and Technical Products business into its Ordnance and Tactical Systems unit. Regardless, the Pentagon announced Thursday that it is exercising an option attached to an existing contract with the soon-to-disappear General Dynamics Armament and Technical Products unit.

Pursuant to this option, General Dynamics will supply an unspecified number of hydra rockets, warheads, and related parts to the U.S. Army, Navy, and Air Force, and also to the government of Saudi Arabia. The Pentagon's contract announcement noted that the cumulative total face value of this contract has now risen past $1 billion, thanks to this award.

Generally fired from rocket launchers aboard combat aircraft and helicopters, the hydra rocket is a low-cost, 70mm munition comprising a MK66 MOD 4 rocket motor, one of nine possible warheads, and one or more fuzes to set them off. The high degree of modifiability of the rocket makes the hydra "a tailor-made solution to the warfighter's situation requirements," says General Dynamics. 

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  • Report this Comment On July 18, 2013, at 11:50 PM, daverhall wrote:

    I wonder who this company paid off to get this contract? Congress and the Obama administration?

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Rich Smith

I love things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

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