General Dynamics Receives Submarine Contract Modification Worth USD 41 Million

General Dynamics Electric Boat received two U.S. Navy contract modifications with a combined value of $41 million to continue development of the Common Missile Compartment for the next-generation strategic deterrent submarine and to support nuclear-submarine maintenance work. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Under the first contract modification, Electric Boat will procure, manufacture and test prototype material and equipment to be used in the production of the Common Missile Compartment for the United Kingdom’s Successor ballistic-missile submarine and the United States’ Ohio replacement submarine. The $16.1 million award modifies a $76 million contract announced in December 2008 for engineering, technical services, concept studies and design of a Common Missile Compartment for the next-generation ballistic missile submarines being developed by the Royal Navy and the U.S. Navy. The overall contract has a potential value of more than $671 million.

Under the second contract modification, valued at $24.9 million, Electric Boat will continue to operate the Nuclear Regional Maintenance Department (NRMD) at the naval submarine base in Groton, Conn. The company will provide project management, planning, training and radiological-control services to support maintenance, modernization and repairs. A core group of about 25 Electric Boat employees is assigned to the NRMD, with surge groups of up to 100 shipyard employees assigned for short periods. Awarded in 2009, this three-year contract has a total value of $78 million.

Source: generaldynamics, August 3, 2011;