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General Dynamics Lands $5B Contract to Complete Navy Columbia-Class Submarine Design

General Dynamics (NYSE: GD) Electric Boat subsidiary has received a potential $5 billion contract to complete design work on the lead Columbia-class ballistic missile submarine for the U.S. Navy.

The Integrated Product and Process Development contract includes funds for the development of submarine components and technologies as well as manufacturing of a missile tube module and a reactor compartment bulkhead, the Defense Department said Thursday.

Electric Boat will carry out work in Groton, Connecticut; Newport News, Virginia; and Quonset, Rhode Island through December 2031.

DoD added the IPPD contract includes foreign military sales to the U.K. and requires Electric Boat to produce strategic weapon support system kits for the country’s submarines.

The Navy will obligate $175.1 million at the time of award from its fiscal 2017 shipbuilding and conversion funds; fiscal 2017 research, design, test and evaluation funds; and U.K. funds.

General Dynamics said Thursday it is scheduled to begin construction of the first Columbia-class submarine in the fall of 2020.

The military branch seeks to procure a total of 12 new SSBNs.

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