Auxiliary and Support Ships for the United States Navy
We offer high-value-added design, engineering, construction and assembly work, as well as lifecycle support for the next-generation of platforms for the United States Navy. Our Marine Systems group provides comprehensive ship and submarine overhaul, repair and lifecycle support services to extend the service life and maximize the value of these ships. We also provide extensive submarine repair services in a variety of locations and are converting two decommissioned submarines to moored training ships. In support of allied navies, we offer program management, planning, engineering and design support for submarine and surfaceship construction programs.
Beyond our work for the Navy, the Marine Systems group has extensive experience in all phases of ship construction for commercial customers, designing and building oil tankers and dry cargo carriers for commercial markets. In addition, the Marine Systems group leverages its design and engineering expertise 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.
Research and Development
To foster innovative product development and evolution, we conduct sustained R&D activities as part of our normal business operations. In the commercial sector, most of our Aerospace group’s R&D activities support Gulfstream’s product enhancement and development programs. In our U.S. defense businesses, we conduct customer sponsored R&D activities under government contracts and company sponsored R&D, investing in technologies and capabilities that provide solutions for our customers. In accordance with government regulations, we recover a portion of company-sponsored R&D expenditures through overhead charges to U.S. government contracts.
We develop technology, manufacturing processes and systems integration practices. In addition to owning a large portfolio of proprietary intellectual property, we license some intellectual property rights to and from others. The U.S. government holds licenses to many of our patents developed in the performance of U.S. government contracts, and it may use or authorize others to use the inventions covered by these patents. Although these intellectual property rights are important to the operation of our business, no existing patent, license or other intellectual property right is of such importance that its loss or termination would have a material impact on our business.
Raw Materials, Suppliers and Seasonality
We depend on suppliers and subcontractors for raw materials, components and subsystems. Our U.S. government customer is a supplier on some of our programs. These supply networks can experience price fluctuations and capacity constraints, which can put pressure on our costs. Effective management and oversight of suppliers and subcontractors is an important element of our successful performance. We attempt to mitigate these risks with our suppliers by entering into long-term agreements and leveraging company-wide agreements to achieve economies of scale, and by negotiating flexible pricing terms in our customer contracts. We have not experienced, and do not foresee, significant difficulties in obtaining the materials, components or supplies necessary for our business operations. Our business is not seasonal in nature. The receipt of contract awards, the availability of funding from the customer, the incurrence of contract costs and unit deliveries are all factors that influence the timing of our revenue. In the United States, these factors are influenced by the federal government’s budget cycle based on its October-toSeptember fiscal year.
To improve productivity and complete projects on time and on budget, we help clients implement lean construction techniques such as Critical Path Compression, Parallel Processing, and Last Planner Construction System.
We help clients improve performance by designing portfolios—supported by resource reallocation, integrated strategies, and planning processes—that position them for success.