A General Dynamics (NYSE: GD) business unit has received a potential five-year, $193 million contract from the U.S. Army to build penetrator bomb bodies and components.
The Army Contracting Command awarded the indefinite-delivery/indefinite-quantity contract to General Dynamics Ordnance and Tactical Systems to produce the BLU-109 units, the company said Wednesday.
General Dynamics added it has already received the first orders valued at $9.3 million.
This contract calls for the company to address the second-source production requirement for the warhead bodies and components amid increased demand across the U.S. Air Force and U.S. Navy.
Each 2, 000-pound BLU-109/B Hard Target Warhead features a steel casing that works to destroy hardened or protected targets including command locations, weapon storage sites and transportation and communication resources.