General Dynamics Electric Boat Awarded $5.1B By US Navy For Columbia Class Submarines - General Dynamics (NYSE:GD)

General Dynamics Corporation GD said its submarine design unit, General Dynamics Electric Boat, has been awarded a $5.1-billion modification of the previously awarded Columbia Integrated Product and Process Development Contract from the U.S. Navy.
The contract is for the Columbia class of submarines, the nation's next-generation sea-based strategic deterrent.
Electric Boat is the prime contractor on the Columbia program, which will replace the aging Ohio class ballistic missile submarines.
Work will be performed in Groton, Connecticut; Quonset Point, Rhode Island; and Newport News, Virginia; and is expected to be completed by October 2030.
Also Read: US Senate Passes $858B In Annual Defense Spending, Higher Than Proposed By President Biden
The award funds advance procurement and advance construction of critical components and materials to support Build II (the next five ships in the class).
Advance procurement of long lead time materials and component construction is critical to the program, and the strategic investments in the development and expansion of the Submarine Industrial Base will help stabilize and grow the supply chain, which increases manufacturing capacity, reduces risk, and ultimately drives timely delivery of submarines to the Navy," said President Kevin Graney.
At 560 feet long with a displacement of nearly 21,000 tons, the submarines of the Columbia class will be the largest ever built by the United States.
Price Action: GD shares are trading lower by 1.22% at $246.91 on the last check Thursday.

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