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General Dynamics Gets $696M Contract Modification for Additional Virginia-Class Submarine Materials

The U.S. Navy has awarded General Dynamics‘ (NYSE: GD) Electric Boat subsidiary a $696.2 million contract modification to obtain additional long-lead time materials needed to build four Virginia-class submarines.

The modification will fund procurement of steam and electric plant components, main propulsion systems, ship service turbine generators and miscellaneous hull, mechanical and electrical parts for SSN 802SSN 803SSN 804 and SSN 805, the Defense Department said Monday.

Electric Boat is scheduled to begin construction of the submarines in fiscal year 2019.

The Naval Sea Systems Command will obligate the entire modification amount at the time of award from the service branch’s fiscal 2018 shipbuilding and conversion funds.

Locations of work include California, Virginia, Rhode Island, New York, Massachusetts, Pennsylvania, New Jersey, Connecticut, Indiana, Colorado, Illinois, Florida, Arizona, Washington, South Carolina, Kentucky, Virginia, Wisconsin and the U.K.

The Pentagon expects Electric Boat to complete work under the modification in January 2019

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