General Dynamics Electric Boat gets $1.85B Virginia class contract mod

Photo: General Dynamics Electric Boat

General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD) reports that it was a­­­warded a $1.85 billion contract modification to a previously awarded contract supporting submarine production. This modification is for long lead time material and preliminary construction efforts associated with Virginia-class Block VI submarines as detailed in the June 26 U.S. Department of Defense contract award announcement.

“This contract modification allows for the acquisition of critical material and components for Virginia-class submarines that require substantial lead time to manufacture and deliver. It sends a continued demand signal, supporting supplier investment in the capacity and materials needed to achieve our required production volume,” said Mark Rayha, president of General Dynamics Electric Boat. “Consistent funding and support such as this contract modification is essential for the shipyards to achieve the high-rate production of submarines the Navy needs.”

According to the DOD announcement Work will be performed in Sunnyvale, California (37%); Tucson, Arizona (6%); Chesapeake, Virginia (6%); Dallas, Texas (4%); York, Pennsylvania (3%); Ashland, Virginia (3%); South El Monte, California (3%); Westminster, Massachusetts (3%); Manchester, New Hampshire (3%); Huntington, West Virginia (3%); Minneapolis, Minnesota (2%); McKeesport, Pennsylvania (2%); Spring Grove, Illinois (2%); Louisville, Kentucky (1%); Warren, Massachusetts (1%); Camden, New Jersey (1%); El Cajon, California (1%); Yaphank, New York (1%); and other locations less than 1% (18%), and is expected to be completed by September 2035. 

GD Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. Headquartered in Groton, Connecticut, it employs more than 24,000 people.