WASHINGTON — For defense contractors, there is scant reason to fret about the size of a possible income tax return as do many Americans. Especially on good days.
General Dynamics had one such good day last week.
On Thursday, its Land Systems Division in Michigan was awarded a $1,357,144,255 cost-plus-fixed-fee contract for “retrofit, damage repair, and reset-refurbishment services to support the Stryker Family of Vehicles.”
The Stryker is the Army’s primary land vehicle and will remain so until the Army can determine its replacement. Its variants are also a popular vehicle for the militaries of several foreign nations.
“Bids were solicited via the internet with one received. Work locations and funding will be determined with each order, with an estimated completion date of Feb. 28, 2024,” the Defense Department said, in its Friday posting of contracts.
The good day continued for General Dynamics, among other contractors, as February came to a close and a regular end-of-the-month money flow ensued.
General Dynamics received a second contract for the same amount, same vehicle — a $1,357,144,255 cost-plus-incentive-fee contract — but this one for Stryker “wholesale supply, performance-based, logistics services.”
Again, bids were solicited via the internet with one received — not surprising since only General Dynamics makes the Stryker.
To complete the Stryker trifecta, General Dynamics also was awarded a $66,395,558 modification to contracts for Stryker “sustainment services” over the next year. “Work locations and funding will determined with each order,” the Defense Department said.
According to some economic forecasts, these latest contracts for Stryker may not be the last for General Dynamics. Yahoo Finance projects the “Global Armored Vehicles Market” is expected to see a rise in demand of 3.3 percent, from 2018 to 2023.
The Yahoo report attributed the increased demand to more conflicts among nations, the spread of terrorism, and higher defense budgets. “Thanks to the presence of combat-proven military vehicles in its portfolio, General Dynamics can be projected to significantly gain in this expanding market.”
It was not only the Stryker that helped General Dynamics enter March like a lion.
To support the Abrams tank, General Dynamics Land Systems was awarded an $83,182,437 modification to “incorporate additional technological capabilities” into the Abrams system package.
Work on the Abrams also will bring General Dynamics an additional $27,892,142 for Abrams systems “technical support.”
All in one day.