General Dynamics Awarded Potential $24.1B Contract Modification for Block V Virginia-Class Submarines

Jeff Brody

General Dynamics’ (NYSE: GD) Electric Boat subsidiary has received a potential $24.1B contract modification to build nine Block V Virginia-class submarines.

Electric Boat will work with Huntington Ingalls Industries' (NYSE: HII) Newport News Shipbuilding division to build the submarines under the multiyear contract, which includes an option for one additional vessel with the Virginia Payload Module, General Dynamics said Monday.

The Department of Defense said the modification has a base amount of $22.2B and includes design support, spare material, testing and other services. Eight of the nine Block V vessels will be equipped with VPM, an 84-foot component designed to provide the service with undersea strike capability and capacity to accommodate various payloads.

Work will occur in Virginia, Rhode Island, Connecticut, California, Pennsylvania, Maryland and other areas within and outside the U.S. through August 2029 and could extend to February 2030 should the service exercise the option.

Construction work on the submarines will kick off in 2019 with deliveries scheduled between 2025 and 2029. HII said Newport News will be the delivery yard for five of the nine vessels.

Electric Boat and Newport News Shipbuilding have developed and delivered 18 Virginia-class submarines to the Navy. Ten Block IV vessels are in the construction phase.

Naval Sea Systems Command will obligate $3.1B in shipbuilding and conversion funds for fiscal years 2017 and 2019 at the time of award.

You may also be interested in...

Gil Dussek CEO Gunnison Consulting Group

Gunnison Buys Federal IT Service Management Firm G2SF; Gil Dussek Quoted

Gunnison Consulting Group has acquired Global Solutions & Services Frameworks for an undisclosed sum to expand its information technology service management, mobile computing and cybersecurity capabilities in the federal government services market. “This deal aligns with our modernization strategy and we remain focused on improving critical government programs, while driving long-term innovation to meet evolving customer demands," said Gunnison CEO Gil Dussek.

Telos

Cybersecurity Firm Telos Launches IPO

Telos (Nasdaq: TLS) targeted to raise approximately $254M from the Ashburn, Virginia-based cybersecurity company's initial public offering Thursday, offering 15M shares of common stock with pricing at $17 each.