General Dynamics 2013 Annual Report Download - page 10

remaining eight boats under contract are scheduled for delivery
through 2018. We received advanced funding in 2013 for long-lead
materials for submarines in the next block of the program and
anticipate being awarded a construction contract in 2014.
We are the lead designer and producer of DDG-51s, managing the
design, modernization and lifecycle support of these ships. As the only
active destroyer in the Navy’s global surface fleet, DDG-51s are multi-
mission combatants that offer defense against a wide range of threats,
including ballistic missiles. We currently have construction contracts for
six DDG-51s, including four awarded in 2013, scheduled for delivery
through 2022, as well as an option for an additional ship.
The group is also building the three ships planned for the DDG-1000
destroyer program. These ships are equipped with numerous
technological enhancements, including a low radar profile, an
integrated power system and advanced gun systems that provide a
three-fold increase in range over current naval surface weapons.
Deliveries of the ships are scheduled for 2015, 2016 and 2018. The
first ship in the program is nearly 90 percent complete.
The group’s MLP auxiliary support ship serves as a floating transfer
station, improving the Navy’s ability to deliver equipment and cargo to
areas without adequate port access. In 2013, the group delivered the
first ship in the program, and construction is underway on the
remaining two ships, scheduled for delivery in 2014 and 2015. The
Navy’s long-term shipbuilding plan includes procurement of a fourth
ship in 2014. The third and fourth ships will be configured as Afloat
Forward Staging Bases (AFSB), designed to facilitate a variety of
missions in support of special operations, providing significant new
capabilities to the customer.
We are also developing new technologies and naval platforms in
conjunction with our customers. These design and engineering efforts
include the development of the next-generation ballistic-missile
submarine to replace the Ohio class of ballistic-missile submarines. In
conjunction with these efforts, the group is leading the design of the
Common Missile Compartment under joint development for the U.S.
Navy and the U.K. Royal Navy.
In addition, Marine Systems provides comprehensive ship and
submarine overhaul, repair and lifecycle support services to extend the
service life and maximize the value of these ships. Our surface-ship
repair operations include a full-service maintenance and repair
shipyard on the West Coast and repair shipyards on the East Coast. We
also provide extensive submarine repair services in a variety of U.S.
locations. In support of allied navies, we offer program management,
planning, engineering and design support for submarine and surface-
ship construction programs. We also operate ships for the U.S. Military
Sealift Command and commercial customers.
Marine Systems has the proven capability to design and produce
ships for commercial customers to meet the Jones Act requirement that
ships carrying cargo between U.S. ports be built in U.S. shipyards. We
currently have construction contracts for nine ships, including seven
secured in 2013, scheduled for delivery through 2017. We anticipate
that the age of the Jones Act fleet and environmental regulations that
impose more stringent emission control limits will continue to provide
additional commercial shipbuilding opportunities.
To further the group’s goals of operating efficiency, technological
innovation, affordability for the customer and continuous improvement,
we make strategic investments in our business, often in cooperation with
the Navy and local governments. In addition, Marine Systems leverages
its design and engineering expertise across its shipyards to improve
program execution and generate cost savings. This knowledge-sharing
enables the group to use resources more efficiently and drive process
improvements. We are well-positioned to continue to fulfill the ship-
construction and support requirements of our customers.
Revenues for the Marine Systems group were 20 percent of our
consolidated revenues in 2011 and 21 percent in 2012 and 2013.
Revenues by major products and services were as follows:
Year Ended December 31 2011 2012 2013
Nuclear-powered submarines $ 3,696 $ 3,601 $ 3,697
Surface combatants 1,191 1,152 1,139
Auxiliary and commercial ships 930 746 499
Repair and other services 814 1,093 1,377
Total Marine Systems $ 6,631 $ 6,592 $ 6,712
INFORMATION SYSTEMS AND TECHNOLOGY
Our Information Systems and Technology group is a three-part portfolio
providing technologies, products and services that address a wide range
of military, federal/civilian and commercial information-system needs.
We provide full-spectrum support for product design, development,
integration, production and sustainment in:
•secure mobile communication systems;
•information technology (IT) solutions and mission support services; and
•intelligence, surveillance and reconnaissance (ISR), naval control
systems and cyber security solutions.
Secure mobile communication systems – We design, integrate and
manufacture secure communication and command-and-control systems
and operational hardware for customers in the U.S. Department of
Defense (DoD), the intelligence community, federal/civilian and public
safety agencies, and for international customers. Our leadership in this
6 General Dynamics Annual Report 2013