General Dynamics Electric Boat Awarded $1.076 Billion Contract Modification for Virginia-Class Submarines

Rhea-AI Impact

(Low)

Rhea-AI Sentiment

(Neutral)

Tags

05/23/2023 - 06:48 PM

GROTON, Conn., May 23, 2023 /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE: GD), announced today it has been awarded a $1.076 billion contract modification from the U.S. Navy to provide long-lead-time material and advanced construction for Virginia-class fast-attack submarines.

Electric Boat is presently under contract for construction of submarines in Block V of the class. The $1,075,896,000 in advance procurement funds from this contract modification will enable Electric Boat to purchase materials and major components for hulls 812 and 813.

"This contract modification sends a crucial demand signal to the submarine industrial base, enabling our suppliers to invest in the capacity and materials needed to increase production volume," said Kevin Graney, president of General Dynamics Electric Boat.

Virginia-class submarines are designed from the keel up for the full range of 21st-century mission requirements, including anti-submarine and surface ship warfare and special operations support.

Electric Boat constructs Virginia-class submarines for the U.S. Navy in a teaming agreement with Newport News Shipbuilding, a division of HII. Submarines of the Virginia class embody the commitment by the Navy and industry to reduce costs without decreasing capabilities through a multi-year procurement strategy, continuous improvements in construction practices and cost-reduction design changes.

General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. Headquartered in Groton, Connecticut, the company employs more than 20,500 people. More information about General Dynamics Electric Boat is available at www.gdeb.com.

General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $39.4 billion in revenue in 2022. More information about General Dynamics is available at www.gd.com.