General Dynamics Corporation (NYSE:GD) business unit, General Dynamics Ordnance and Tactical Systems (OTS), won an initial task contract worth $218 million for 155mm M1128 Load, Assemble, and Pack (LAP).
The task order, awarded to OTS and another company under a $974 million multiyear firm-fixed-price U.S. Army contract, includes funding for M1128 facilitization and production at OTS’s operations in Camden, Arkansas.
This contract will support installing an LAP facility via modernized processes and air-cooling technology to enhance the quality and efficiency of the artillery LAP process.
In February this year, OTS bagged a similar order for M795 LAP facilitization of 20,000 monthly rounds.
Both orders combined is expected to support 50,000 rounds per month of new LAP capacity by 2025.
Also Read: General Dynamics Unit Wins $258M Contract From US Army
As of Q2, GD had a total estimated contract value, the sum of all backlog components, of $129.3 billion (+2.3% Y/Y).
Price Action: GD shares are trading lower by 0.13% at $222.63 premarket on the last check Tuesday.
