General Dynamics, Nammo Perry Awarded Spots on $489M Army Ammo Propelling Charge Contract

General Dynamics’ (NYSE: GD) ordnance and tactical systems unit and Norwegian defense company Nammo’s Florida-based business arm have won spots on a five-year, $488.7 million contract from the U.S. Army to produce red bag charges used for firing in Howitzers containing M185 and M199 cannon tubes.

Orders under the fixed-price-incentive contract comprise manufacturing, assembling, inspecting, packaging and delivery of 155mm M119A2 propelling charges, the Department of Defense said Thursday.

The shared award has an ordering period that runs until Sept. 6, 2028. The military branch will assign performance locations and funds with each order. 

New Jersey-based Army Contracting Command conducted an online procurement for the contract with two offers received.

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