US Navy Awards GD $6.5 M for Virginia Payload Module Development
The U.S. Navy has awarded General Dynamics Electric Boat a $6.5 million contract modification to support development of the Virginia Payload Module (VPM). Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
The VPM will comprise four large-diameter payload tubes in a new hull section to be inserted in Virginia-class submarines. The section will extended the hull by 70 to 80 feet and boost strike capacity by 230 percent while increasing the cost by less than 15 percent.
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This modification is part of an overall engineering contract supporting the Virginia Class Submarine Program. The contract was initially awarded in 2010 and has a potential value of $965 million.
Source : General Dynamics Corporation (NYSE: GD) - view original press release