General Dynamics Mission Systems Awarded $491.6 Million Design and Development Contract for Space Development Agency's Ground, Management and Integration Program

Rhea-AI Summary

General Dynamics Mission Systems, a unit of General Dynamics (NYSE:GD), has been awarded a $491.6 million contract by the Space Development Agency (SDA) for their Ground Management and Integration (GMI) program. This contract builds upon the success of the Tranche 1 Operations and Integration contract, extending capabilities to support Tranche 2 of the Proliferated Warfighter Space Architecture (PWSA). The company, along with teammate Iridium, will develop a Tranche-agnostic ground system for PWSA, providing services for evolution, expansion, integration, testing, and maintenance of ground entry points, operations centers, and infrastructure management. This contract underscores General Dynamics' commitment to delivering space-based solutions for the joint warfighter community.

Positive

• Secured a $491.6 million contract from the Space Development Agency
• Expanding capabilities from Tranche 1 to Tranche 2 of the PWSA program
• Partnering with Iridium to deliver an integrated ground system
• Demonstrating strong performance and systems integration experience in space-based solutions

Negative

• None.

Insights

Defense Industry Analyst

This $491.6 million contract for General Dynamics Mission Systems is a significant win in the rapidly evolving space defense sector. The contract's focus on the Ground, Management and Integration (GMI) program underscores the growing importance of integrated ground systems in space-based defense architectures.

The award builds upon General Dynamics' previous success with the Tranche 1 contract, indicating strong performance and customer satisfaction. This continuity is important in complex, long-term defense projects. The contract's scope, including design, analysis and engineering studies, suggests a comprehensive approach to developing a Tranche-agnostic ground system for the Proliferated Warfighter Space Architecture (PWSA).

For investors, this contract represents a stable, long-term revenue stream in a high-priority defense sector. It also positions General Dynamics favorably for future space-related defense contracts, potentially leading to additional growth opportunities in this strategic area.

Space Technology Expert

The Space Development Agency's (SDA) focus on a Proliferated Warfighter Space Architecture (PWSA) represents a paradigm shift in military space strategy. By emphasizing a distributed network of smaller satellites rather than a few large, expensive ones, the SDA aims to enhance resilience and responsiveness in space-based capabilities.

General Dynamics' role in developing a Tranche-agnostic ground system is crucial. This approach allows for flexibility and scalability as the PWSA evolves, potentially reducing long-term costs and improving adaptability to emerging threats. The collaboration with Iridium, known for its satellite communication expertise, adds significant value to the project.

The emphasis on enterprise integration for Tranche 2 suggests a focus on interoperability and seamless data flow across the entire architecture. This holistic approach is essential for maximizing the effectiveness of the PWSA in supporting modern warfare needs.

Financial Analyst

The $491.6 million contract award to General Dynamics Mission Systems is a positive development for the company and its shareholders. This contract represents approximately 1.16% of General Dynamics' 2023 revenue of $42.3 billion, providing a modest but meaningful boost to the company's top line.

More importantly, this contract strengthens General Dynamics' position in the high-growth space defense sector. The long-term nature of the project and its potential for expansion into future tranches could lead to sustained revenue streams and improved profit margins as the company gains expertise in this specialized area.

Investors should note that while this contract is significant, it's part of a broader $42.3 billion revenue base. The company's diversified portfolio across aerospace, marine systems, combat systems and technologies provides stability, while contracts like this offer growth potential in emerging defense sectors. This balanced approach could appeal to investors seeking both stability and growth opportunities in the defense industry.

Building upon the innovation and success of the Tranche 1 Operations and Integration contract, General Dynamics will evolve the ground system architecture under the Ground, Management and Integration program to support development of Proliferated Warfighter Space Architecture mission capabilities for future tranches.

FAIRFAX, Va., Sept. 4, 2024 /PRNewswire/ -- General Dynamics Missions Systems, a business unit of General Dynamics (NYSE:GD), announced today it was awarded a $491.6 million contract by the Space Development Agency (SDA) to perform design, analysis, engineering studies, and technical augmentation for their Ground Management and Integration (GMI) program's integrated ground system. General Dynamics and teammate Iridium builds upon the Tranche 1 (T1) Operations and Integration contract to provide additional Tranche 2 (T2) capabilities under GMI, delivering a fully functional integrated ground system for the SDA's Proliferated Warfighter Space Architecture (PWSA).

"As SDA continues to address the space-based demands of our joint warfighter community to enhance responsiveness and advantage, I'm proud of our team's accomplishments and inspired by their steadfast commitment to 'semper citius'," said Amy Johnson, vice president and general manager for the Space, Cyber & Intelligence Systems line of business with General Dynamics Mission Systems. "Our strong T1 performance and extensive systems integration experience enable us to deliver an extensible PWSA ground system at the pace of SDA."

Under this contract, General Dynamics will work with SDA and key stakeholders to develop and deliver a Tranche-agnostic ground system for PWSA. In addition, General Dynamics will perform enterprise integration for the T2 constellation. Specifically, General Dynamics and Iridium will provide all services required for the evolution, expansion, integration, testing and maintenance of the ground entry points, operations centers, enterprise test and checkout capabilities and infrastructure management, including all development, systems engineering, integration, testing, maintenance, and site support.

General Dynamics Mission Systems provides mission-critical solutions to defense, intelligence and cyber-security customers across all domains. Headquartered in Fairfax, Virginia, General Dynamics Mission Systems employs more than 12,000 people worldwide. More information about General Dynamics Mission Systems' broad portfolio of capabilities is available at gdmissionsystems.com.

General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $42.3 billion in revenue in 2023. More information about General Dynamics is available at www.gd.com.

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SOURCE General Dynamics

FAQ

What is the value of the contract awarded to General Dynamics Mission Systems by the Space Development Agency?

General Dynamics Mission Systems was awarded a $491.6 million contract by the Space Development Agency for their Ground Management and Integration (GMI) program.

What is the purpose of the Ground Management and Integration (GMI) program for General Dynamics (GD)?

The GMI program aims to develop and deliver a Tranche-agnostic ground system for the Proliferated Warfighter Space Architecture (PWSA), including enterprise integration for the Tranche 2 constellation.

How does this contract relate to General Dynamics' (GD) previous work with the Space Development Agency?

This contract builds upon General Dynamics' success with the Tranche 1 Operations and Integration contract, extending capabilities to support Tranche 2 of the PWSA program.

What specific services will General Dynamics (GD) provide under this new contract?

General Dynamics will provide services for the evolution, expansion, integration, testing, and maintenance of ground entry points, operations centers, enterprise test and checkout capabilities, and infrastructure management for the PWSA program.