General Dynamics Electric Boat Won 3 US Navy Contracts Totaling $4.6B
General Dynamics (NYSE: GD) Electric Boat was recently awarded three U.S. Navy contracts totaling $4.6 billion to design and develop the next-generation strategic deterrent submarine, and to continue construction and purchasing of materials for Virginia-class attack submarines. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
Under a five-year, $1.85 billion Ohio Replacement Program contract, Electric Boat will perform research and development work for this new class of ballistic-missile submarine, which is scheduled for a 2021 construction start. Additionally, Electric Boat will continue development of the joint U.S. Navy / Royal Navy Common Missile Compartment for Ohio Replacement submarines and the UK Successor-class ballistic-missile submarine. The potential value of this contract is $1.995 billion.
Electric Boat also received a $2.5 billion award to build two Virginia-class submarines – South Dakota (SSN-790) and Delaware (SSN-791) – the 17^th and 18^th ships of the class. Construction of Virginia-class submarines is shared between Electric Boat, the prime contractor, and its teammate, Newport News Shipbuilding.
Under the third award, Electric Boat will receive $308 million to purchase long lead-time materials for the as-yet unnamed Virginia-class submarines SSN-792, SSN-793 and SSN-794.
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