General Dynamics Splits $94 Million Flare-Round Contract
The Department of Defense issued 14 separate contract awards Tuesday, totaling just over $880 million in combined value. Of these, the second-biggest contract awarded -- $94.2 million in maximum value -- was split between two winners.
Privately held IMT Defense Corp. and the Ordnance and Tactical Systems division of publicly traded General Dynamics were both named winners of a contract to supply M485A2 Projectile Metal Parts to the U.S. Army.
The M485A2 is a 155mm shell that's essentially a "flare" round. Fired from an artillery system, the round explodes in midair, releasing a canister at 600 meters height that floats to the ground on a parachute, falling at 5 meters per second, and emitting 1 million candle power illumination for troops on the ground. One flare thus provides illumination for about two minutes. One million candlepower is considered sufficient to illuminate a circle of ground 1 kilometer across.
The article General Dynamics Splits $94 Million Flare-Round Contract originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.