General Dynamics Electric Boat awarded $251 million in Navy contracts to support fleet maintenance and Virginia-class sub development and design work

Rhea-AI Summary

General Dynamics Electric Boat secured two U.S. Navy contracts worth $251 million. The first contract, valued at $215.7 million, modifies an existing agreement aimed at providing engineering and technical services for submarines, potentially exceeding $1 billion if all options are utilized. The second contract, totaling $35.3 million, focuses on Reactor Plant Planning Yard services. President Kevin Graney highlighted their commitment to supporting the Navy, enhancing submarine capabilities, and investing in the workforce.

Positive

• Secured two major contracts totaling $251 million.
• First contract could exceed $1 billion if all options are exercised.
• Continued support for U.S. Navy enhances future revenue prospects.

Negative

• None.

GROTON, Conn., Oct. 1, 2020 /PRNewswire/ -- General Dynamics Electric Boat, a business unit of General Dynamics (NYSE:GD), was awarded two U.S. Navy contracts this week with a total value of $251 million.

The first contract is a $215.7 million modification to a previously awarded contract, the cumulative value of which, if all options are exercised, could be more than $1 billion.  Electric Boat will provide planning yard, design agent, engineering services and technical support for in-service submarines and submersible systems.  The second contract is a $35.3 million cost-plus-fixed-fee contract for Reactor Plant Planning Yard services for the submarine fleet and Support Yard services for the Navy's Moored Training Ships. 

"The shipbuilders of Electric Boat are proud to be a partner to the U.S. Navy, and continue to execute our mission to provide our sailors with the advantage that helps protect our Navy and our nation," said Kevin Graney, president of General Dynamics Electric Boat.  "We continue to work to hire, train and develop future generations of shipbuilders as we continue to deliver the Virginia class of fast attack submarines and move toward full-scale construction of the Columbia class of ballistic missile submarines." 

General Dynamics, headquartered in Reston, Virginia, is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; IT services; C4ISR solutions; and shipbuilding and ship repair. General Dynamics employs more than 100,000 people worldwide and generated $39.4 billion in revenue in 2019. More information about Electric Boat is available at www.gdeb.com. More information about General Dynamics is available at www.gd.com.

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SOURCE Electric Boat

FAQ

What contracts did General Dynamics Electric Boat receive in October 2020?

In October 2020, General Dynamics Electric Boat received two contracts totaling $251 million from the U.S. Navy.

What is the value of the first contract awarded to General Dynamics Electric Boat?

The first contract awarded is a modification valued at $215.7 million.

What services are covered under the U.S. Navy contracts awarded to General Dynamics Electric Boat?

The contracts cover engineering services and technical support for submarines and reactor plant planning.

How much could the first contract awarded to General Dynamics Electric Boat potentially be worth?

The first contract could potentially be worth more than $1 billion if all options are exercised.

What was the total value of the second contract awarded to General Dynamics Electric Boat?

The second contract awarded has a total value of $35.3 million.