Thursday, October 2, 2008

General Dynamics Electric Boat grabs $268M Navy contract

By Mass High Tech Staff

General Dynamics reports its Groton, Conn.-based Electric Boat subsidiary has landed $268 million from the U.S. Navy for design services for nuclear-powered attack submarines.
 
The deal is a follow-on to an October 2005 contract with a potential total value of $443.4 million. Work on the contract is expected to be completed by September 2009.

Under the contract modification, Electric Boat will maintain and update design drawings and data for all Virginia-class submarines, including technology insertions. In addition, Electric Boat will perform Virginia-class development and design studies.

Electric Boat and its construction partner, Northrop Grumman Shipbuilding, have delivered five ships of the class to the Navy -- USS Virginia (SSN-774), USS Texas, USS Hawaii (SSN-776), USS North Carolina (SSN-777) and New Hampshire (SSN-778). Five additional submarines are under contract.

In March, Electric Boat won three other contract modifications for almost $450 million from the Navy. The largest modification landed Electric Boat $325 million for long lead-time material used in submarines. The material will be used for steam and electric plant components, propulsion units and generators, mechanical and electrical system components and the submarine’s hull. The company also landed $71.9 million for submarine maintenance and repair and $50 million for submarine design and modernization.

Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE:GD). General Dynamics, headquartered in Falls Church, Va., employs approximately 84,600 people and reported a 2007 net income of $2.1 billion on revenue of $27.2 million.