General Dynamics Lands $92M Army Contract to Produce Abrams Tanks

Abrams-tankGeneral Dynamics’ (NYSE: GD) land systems business unit has secured a potential two-year, $92 million contract to build six Abrams M1A2 battle tanks for the U.S. Army.

The Army Contracting Command awarded the fixed-price-incentive contract and will obligate $20 million from other procurement funds for fiscal 2015 at the time of award, the Defense Department said Friday.

General Dynamics will perform contract work in Ohio, Pennsylvania, Alabama and Florida through July 31, 2017, according to DoD.

The Abrams M1A2 tank uses a 1, 500-horsepower gas turbine engine and a 120-millimeter M256 smooth bore cannon system designed to fire at armored vehicles and low-flying aircraft.

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