The U.S. government enters into contracts with numerous domestic and foreign companies for products and services. General Dynamics competes
against other large platform and system-integration contractors, as well as smaller companies that specialize in a particular technology
or capability. Internationally, General Dynamics competes with global defense contractors' exports and the offerings of private and
state-owned defense manufacturers based in the countries where the company operates.
General Dynamics' Combat Systems group competes with a large number of domestic and foreign businesses. The Marine Systems group has one primary competitor, Huntington Ingalls Industries (formerly Northrop Grumman Shipbuilding), with which it also partners or subcontracts on several programs, including the SSN 774 Virginia Class Submarine.
General Dynamics' Information Systems and Technology group competes with many companies, from large defense companies to small niche competitors with specialized technologies. The operating cycle of many of General Dynamics' major platform programs can result in sustained periods of program continuity when the company performs successfully.
General Dynamics is also involved in teaming and subcontracting relationships with some of its competitors. Competitions for major defense programs often require companies to form teams to bring together broad capabilities to meet the customer's requirements. Opportunities associated with these programs include roles as the program's integrator, overseeing and coordinating the efforts of all participants in the team, or as a provider of a specific hardware, such as military vehicles provided by Combat Systems, or a subsystem element, such as core mission systems provided by Information Systems and Technology.
Another competitive factor in the defense market is the U.S. government's use of multiple-award indefinite delivery, indefinite quantity (IDIQ) contracts to provide customers with flexible procurement options. IDIQ contracts allow the government to select a group of eligible contractors for a program and establish an overall spending limit. When the government awards IDIQ contracts to multiple bidders under the same program, General Dynamics must compete to be selected as a participant in the program and subsequently compete for individual delivery orders. This contracting model is most common among the company's Information Systems and Technology group's customers but is also being used in programs for which General Dynamics' Combat Systems group competes.
Overall, the main defense market competitors are Boeing, Lockheed Martin, Huntington Ingalls Industries, Northrop Grumman, Raytheon and BAE Systems.
The business-jet aircraft manufacturing market is divided into segments based on aircraft range, price and cabin size.
Gulfstream has several competitors for each of its products, with more competitors for the shorter-range aircraft.
Key competitors include Bombardier, Cessna (Textron),
Dassault Aviation, and Embraer.
Key competitive factors in the Business-Jet Aircraft Market include aircraft safety, reliability and performance; comfort and in-flight productivity; service quality, global footprint and timeliness; technological and new-product innovation; and price. According to General Dynamics, Gulfstream competes effectively in all of these areas.
The Aerospace group competes worldwide in its business-jet aircraft services business primarily on the basis of price, service quality and timeliness. In its maintenance, repair and overhaul (MRO) and fixed-base operations (FBO) business, the group competes with several other large companies, as well as a number of smaller companies, particularly in the maintenance business. In its completions business, the group competes with original equipment manufacturers (OEMs), as well as other third-party providers.
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