GD Awarded $61M Contract

Wednesday, July 31, 2002
Electric Boat, a wholly owned subsidiary of General Dynamics, has been awarded a U.S. Navy contract worth up to $61.1 million to maintain and operate the Shippingport drydock at the Naval Submarine Base New London. The contract covers an initial period of one year, with options for four additional years. Management, operation and preventative maintenance of the Shippingport will be provided on a cost-plus-fixed-fee basis and is worth up to $34.6 million over the next five years, with $2.2 million of the total funded in the current fiscal year. The drydocking services associated with this contract will be paid on a firm-fixed-price basis and will be worth up to $26.4 million during the life of the contract. The Shippingport (ARDM-4), which is used to lift submarines out of the water for repairs, had previously been operated by Navy personnel, but will now be run by a civilian crew of about 40 Electric Boat employees. Assuming control of the Shippingport will give EB yet another presence at the sub base. The company already oversees the Navy's Nuclear Regional Maintenance Department there, as well as providing more than 200 employees to help staff the Naval Submarine Support Facility.
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