U.S. Navy Awards General Dynamics $268 Million for Virginia-class submarine engineering work

The U.S. Navy has awarded General Dynamics Electric Boat a $268 million contract modification to provide lead construction yard services for Virginia-class nuclear-powered attack submarines. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Under the modification, Electric Boat will maintain and update design drawings and data for all Virginia-class submarines, including technology insertions, throughout their construction and post-shakedown availability periods. In addition, Electric Boat will perform Virginia-class development and design studies.

Initially awarded in October 2005, the contract has a total potential value of $443.4 million for work to be completed through September 2009.

Electric Boat and its construction partner, Northrop Grumman Shipbuilding, have delivered five ships of the class to the Navy – USS Virginia (SSN-774), USS Texas, USS Hawaii (SSN-776), USS North Carolina (SSN-777) and New Hampshire (SSN-778). Five additional submarines are under contract.