Under the order from the Army's TACOM Life Cycle Management Command, GD will produce about 600 of the heavy barrel weapons.
Production work will be completed at the General Dynamics facility in Saco, Maine, which employs more than 400 people and has manufactured M2 machine guns since 1979. The production work for the new delivery order will be completed in the spring of 2012.
This is the seventh delivery order awarded to General Dynamics since the company received an indefinite-delivery/indefinite-quantity contract from the Army in 2009.
"Fielded with military forces worldwide, the M2 machine gun has a well-deserved reputation as a highly accurate, effective weapon," said Steve Elgin, vice president and general manager of armament systems for General Dynamics Armament and Technical Products. "These new M2s will continue to serve U.S. warfighters well into the future."