The U.S. Department of Defense announced 17 separate contract awards on Thursday worth upwards of $1.14 billion in total value. One company, however, walked away with a single contract that accounted for nearly half of all the dollars on offer. The name of that lucky winner: General Dynamics (NYSE:GD).
General Dynamics' Ordnance and Tactical Systems division won a $562.2 million indefinite-delivery/indefinite-quantity contract said to contain "firm-fixed-price, cost-plus-fixed-fee and cost delivery orders (or any combination of those)" from the U.S. Special Operations Command. The funds awarded will pay for the purchase of Ground Mobility Vehicles 1.1 (GMV 1.1), a modified Humvee featuring a heavier suspension, more powerful engine, more rugged tires, improved ground clearance, and an open bed that is used by U.S. Special Forces. GMV 1.1 is designed to be highly mobile and transportable by Chinook helicopter.
General Dynamics' production contract will run for seven years and conclude in September 2020.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.