General Dynamics (NYSE: GD) has secured a potential $189M contract extension from the U.S. Navy to continue to support and upgrade the service’s personnel and pay management system.
General Dynamics Information Technology will immediately get an award of $93.2M after the Navy increased the ceiling of the Personnel Modernization contract to $270.2M from $177M, the company said Monday.
The PERSMOD contract supports the Navy Standard Integrated Personnel System, a human resource platform that helps the service manage staff, leave, pay and entitlement transactions worth more than $34B of the military branch’s annual budget for personnel.
“Through the PERSMOD contract, we have already completed modernization updates and collapsed one legacy HR system, with a second system’s retirement in progress,” said Leigh Palmer, a senior vice president and head of defense division at GDIT.
“We are excited to leverage these milestones for the Navy and continue to upgrade this program,” Palmer added.
The contract increase includes two six-month pre-approved increments that could extend the ordering period by one year and boost the contract ceiling to approximately $366M if awarded.
The Navy originally awarded in June 2014 the five-year, indefinite-delivery/indefinite-quantity contract to SRA International, a part of CSRA that General Dynamics acquired in April.