General Dynamics Electric Boat Lands $126M Navy Submarine Material Supply Contract

A General Dynamics (NYSE: GD) subsidiary has received a potential one-year, $126.5 million contract to provide long-lead time materials for the U.S. Navy’s Virginia-class submarines.

General Dynamics Electric Boat will use the funds to obtain propulsion units, steam and electric plant components, turbine generators, electrical systems, mechanical and miscellaneous hull components in support of the construction of SSN 802 and SSN 803 submarines, the Defense Department said Tuesday.

Work will occur in California, New Jersey, Pennsylvania, Colorado, Connecticut, Rhode Island, Virginia and Washington through January 2018.

The Naval Sea Systems Command will obligate the full contract amount from the service branch’s shipbuilding and conversion funds for fiscal 2017.

The Virginia-class submarine is designed to replace the retiring Los Angeles-class attack submarines and works to perform mine warfare and intelligence, surveillance and reconnaissance missions as well as target enemy surface ships.

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