General Dynamics Electric Boat recently was awarded two U.S. Navy contracts worth $56.7 million to perform submarine modernization and maintenance work and develop advanced technologies for current and future undersea platforms. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
Under the first award, worth $41.6 million, Electric Boat will continue operating the New England Maintenance Manpower Initiative at the Naval Submarine Base in Groton. The company provides a wide range of overhaul, repair and modernization services in support of submarines, floating dry docks, support and service craft and other equipment at the base. About 270 Electric Boat employees will be engaged in the work.
Under the terms of the second $15.1 million award, Electric Boat will perform advanced submarine research and development studies in support of a wide range of technology areas including manufacturability, maintainability, survivability, hydrodynamics, acoustics and materials. Electric Boat will also conduct research and development in manning, hull integrity, performance, ship control, logistics, weapons handling and safety. This contract modification supports near-term Virginia-class technology insertion, identification of Ohio-class replacement technology options, future submarine concepts and core technologies. Initially awarded in November 2010, the overall contract has a potential value of $711.4 million over a total of five years if all options are exercised and funded.
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