According to Jacksonville Business Journal, Lynn, Massachusetts-based General Electric Company (GE - Analyst Report) announced that it has won an award from the U.S. Naval Supply Systems Command Weapon Systems Support, Philadelphia, for $265 million. The new contract, spanning three years, involves repairs, replacement and program support for 35 F404 engine (F/A 18 A-D) aircraft components.
The contract will extend through the end of December 2015, and would be executed at Fleet Readiness Center Southeast, Jacksonville. Around 3,000 civilians, 1,000 military personnel and 1,000 contractors are employed in Fleet Readiness Center Southeast.
Working capital funds, which have been allocated by the U.S. Department of Defense – Navy will not expire in the fiscal 2012. U.S. Defense will have no financial obligation toward General Electric at the time of receiving the contract. The company competitively procured this contract among the six other solicited.
Fleet Readiness Center, based in Naval Air Station Jacksonville, is a hub for a number of GE defense contracts. In 2008, General Electric won a 12-year contract worth $300 million to provide F-414 engines to the Australian Department of Defense and will be eventually overhauled in Jacksonville. It was the first overhaul contract between GE and Australia.
GE Aviation, a division of GE is the world's leading producer of large and small jet engines for commercial and military aircrafts. In fiscal 2011, this division contributed 13% of the total revenue for General Electric. It also supplies aircraft-derived engines for marine applications and provides aviation services.
United Technologies Corporation (UTX - Analyst Report) , a major competitor of General Electric, also announced a string of contract wins over the past few quarters. On the same day of this contract win for General Electric, United Technologies Corporation was awarded with three cost-sharing contracts from the U.S. Department of Energy. General Electric currently holds a short-term Zacks #4 Rank, which implies a Sell rating on the stock.