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.
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)
Date: Jun 4, 2015