Looking to maintain systems capabilities, General Dynamics sees GTE as a good fit

Looking to maintain systems capabilities, General Dynamics sees GTE as a good fit

By William Jackson

GCN Staff

GTE Government Systems Corp., which supplies goods and services to many military and civilian agencies, will fit in better with its new owner, General Dynamics Corp., than it did with telecommunications carrier GTE Corp., according to General Dynamics executive vice president Gordon England.

'Our interest is in government agencies,'' England said of General Dynamics, a multinational company headquartered in Falls Church, Va. 'That is our everyday activity.''

He said the $1.05 billion acquisition will bring positive changes for GTE Government Systems' customers.

'We have a lean, quick organization with short, tight lines of communications,'' he said. 'We expect our companies to run their businesses efficiently, and we give them the authority to do that.''

General Dynamics began looking at GTE Government Systems after forming its own Information Systems and Technology Group two years ago.

General Dynamics formerly focused on platforms such as submarines and surface ships, in which information technology was becoming more tightly integrated.

'It was evident that to maintain our systems capabilities, we needed to move beyond the platforms themselves,'' England said. 'Of all the companies we looked at, the best fit was GTE Government Systems. We were hoping it would come onto the market.''

GTE spokesman Rob Doolittle said GTE decided to sell its government business in order to focus on the commercial sector.

The sale, announced in June, was completed Sept. 1.

The former GTE subsidiary now is organized into three business units in General Dynamics' information systems and technology group, with their GTE leaders reporting to England as unit presidents.

The units are communications systems in Taunton, Mass., headed by Jerry DeMuro; worldwide telecommunication systems in Needham Heights, Mass., led by Mike Chandler; and electronic systems in Mountain View, Calif., led by John Stewart.

The former GTE Government Systems holds a blanket purchasing agreement under the General Services Administration's Project Safeguard, a Defense Information Systems Agency contract to manage the Defense Department's switched voice networks and a contract to upgrade the Army's Mobile Subscriber Equipment.

It also has an Air Force contract to provide WorkSpace workgroup software, a GSA schedule contract for Site Patrol system security software, a Transportation Department IT Omnibus Procurement contract and a NASA space flight management contract.

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