U.S. Army Awards General Dynamics $24 Million for M107 Metal Parts Production

ST. PETERSBURG, Fla. – The U.S. Army Sustainment Command at Rock Island, Ill., has awarded General Dynamics Ordnance and Tactical Systems $24.2 million for the first year of a multi-year contract for the production of M107 projectile metal parts. The contract has a total potential value of $189 million. General Dynamics Ordnance and Tactical Systems is a business unit of General Dynamics (NYSE: GD).

The M107 is a low-cost, 155mm High Explosive artillery projectile that is used in war and in training. The rounds are fired from the Paladin, M-198 and the M-777 howitzers and are utilized by the U.S. Army and U.S. Marine Corps.

"This award reaffirms our long and noteworthy performance in providing high-quality artillery and mortar projectiles for the Armed Services,” said James Flaherty, vice president and general manager of General Dynamics Ordnance and Tactical Systems Scranton Operations.

Work on the contract will be performed at the company’s Scranton, Pennsylvania, facility and will be completed in October, 2008.