GDIT Awarded $1.5 Billion Enterprise IT Modernization Contract to Strengthen U.S. Strategic Command's Operational Readiness

Rhea-AI Summary

General Dynamics (NYSE:GD) subsidiary GDIT has secured a significant $1.5 billion enterprise IT modernization contract from U.S. Strategic Command (STRATCOM). The contract spans a one-year base period with six option years.

GDIT will implement digital engineering, AI/ML technologies, and transition STRATCOM to a hybrid cloud environment. The project aims to enhance strategic deterrence capabilities, including critical nuclear command and control systems. The company will also deploy advanced cyber and zero trust solutions to protect STRATCOM's networks.

This award expands GDIT's presence in providing mission-critical IT services for combatant commands, adding to its existing work with U.S. Central Command and U.S. Special Operations Command. General Dynamics reported revenue of $47.7 billion in 2024 and employs over 110,000 people globally.

Positive

• Secured substantial $1.5 billion contract with 7-year potential duration
• Contract strengthens GDIT's position in mission-critical military IT services
• Expands existing relationships with U.S. military commands
• Implementation of advanced technologies including AI/ML and cloud solutions

Negative

• None.

Insights

Defense Contract Analyst

GDIT's $1.5B STRATCOM contract bolsters General Dynamics' revenue stability and expands its strategic military IT portfolio.

The $1.5 billion STRATCOM enterprise IT modernization contract represents a significant win for General Dynamics Information Technology (GDIT). With a one-year base and six option years, this contract provides substantial revenue visibility through potentially 2032, strengthening GD's already robust defense services backlog.

This award carries strategic importance beyond its financial value. STRATCOM oversees nuclear command and control—among the military's most mission-critical functions—signaling exceptional confidence in GDIT's capabilities. The contract scope encompasses digital engineering, AI/ML integration, hybrid cloud migration, and zero-trust cybersecurity implementation—all high-margin, next-generation IT services that typically command premium pricing.

The announcement mentions this as an expansion of GDIT's footprint across combatant commands, with existing contracts at CENTCOM and SOCOM. This demonstrates GDIT's ability to capture business across multiple strategic military customers, creating potential for further contract expansion as these organizations share procurement information.

For General Dynamics, this reinforces the value of its IT services division alongside its better-known aerospace, marine, and combat systems segments. The $1.5 billion figure represents approximately 3.1% of GD's 2024 reported revenue of $47.7 billion, making it material yet not transformative for the overall corporation. However, for the GDIT business unit specifically, this likely represents a substantial portion of its annual revenue and solidifies its position in the critical defense IT modernization market.

Company will leverage digital engineering, AI, and cyber capabilities to enhance strategic deterrence, including critical nuclear command and control systems

FALLS CHURCH, Va., Sept. 25, 2025 /PRNewswire/ -- General Dynamics Information Technology (GDIT), a business unit of General Dynamics (NYSE:GD), announced today that it was awarded an enterprise IT modernization contract to strengthen the U.S. Strategic Command's (STRATCOM) operational readiness. The new $1.5 billion contract, awarded in May, covers a one-year base period and six option years.

STRATCOM oversees the nation's strategic deterrence, global strike, nuclear command and control, and electromagnetic spectrum operations around the world. To support its global missions, STRATCOM requires a cutting-edge enterprise IT network environment that connects data and systems to national decision makers and mobile warfighters.

Under this contract, GDIT will leverage its digital engineering capabilities to cut costs, increase efficiency and enhance collaboration among mission partners. The company will also integrate artificial intelligence/machine learning technologies into STRATCOM's enterprise data to empower decision makers to act quickly. Additionally, GDIT will transition STRATCOM to a new hybrid cloud environment to enable greater flexibility and scalability. To protect the combatant command's networks and their data from evolving cyber threats, the company will also implement advanced cyber and zero trust solutions.

"Modernizing STRATCOM's IT capabilities is critical to protecting our national security and maintaining our strategic deterrence edge," said Brian Sheridan, GDIT's senior vice president for Defense. "We look forward to delivering a secure, agile and resilient network that enables our warfighters to be better connected, informed and ready."

The award further expands the company's mission-critical IT services for combatant commands. GDIT also provides digital modernization services for the U.S. Central Command as well as technical and mission support services for the U.S. Special Operations Command.

GDIT is a business unit of General Dynamics, a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 110,000 people worldwide and generated $47.7 billion in revenue in 2024. More information about General Dynamics Information Technology is available at www.gdit.com. More information about General Dynamics is available at www.gd.com.

 

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SOURCE General Dynamics

FAQ

What is the value and duration of GDIT's new STRATCOM contract?

The contract is valued at $1.5 billion and includes a one-year base period with six option years, potentially extending to a total of seven years.

What services will General Dynamics (NYSE:GD) provide under the STRATCOM contract?

GDIT will provide enterprise IT modernization services including digital engineering, AI/ML integration, hybrid cloud transition, and advanced cyber security solutions with zero trust architecture.

How much revenue did General Dynamics generate in 2024?

General Dynamics reported $47.7 billion in revenue for 2024.

What other military commands does GDIT provide services to?

GDIT also provides digital modernization services for U.S. Central Command and technical and mission support services for U.S. Special Operations Command.

What is the strategic importance of the STRATCOM contract for General Dynamics?

The contract strengthens GDIT's position in providing mission-critical IT services for combatant commands and supports STRATCOM's crucial role in strategic deterrence, global strike, and nuclear command and control operations.