The U.S. Navy has awarded a $459 million contract modification to General Dynamics Electric Boat to provide planning yard work and engineering and technical support for nuclear submarines. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
Under the terms of this award, Electric Boat will provide design, engineering and logistics support and research and development activities for active U.S. submarines and submersibles. Electric Boat will also provide information services and support submarine maintenance and modernization activities, training and affordability/cost reduction efforts.
Initially awarded in October 2010, the contract has a potential value of approximately $1.2 billion over three years if all options are exercised.
This work will engage Electric Boat's engineering and design organization, which comprises more than 4,000 employees. Possessing proven technical capabilities, these employees work on all facets of the submarine lifecycle from concept formulation and design through construction, maintenance and modernization and eventually to inactivation and disposal.
Source: General Dynamics Corporation (NYSE: GD)
Date: Oct 16, 2012