General Dynamics Submarine Support Work

Thursday, October 15, 2009

The U.S. Navy has awarded General Dynamics Electric Boat $61.8m to extend two existing contracts for submarine modernization and maintenance and reactor-plant planning yard work. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Under a $43.7m modification, Electric Boat will continue to perform non-nuclear submarine modernization and repair services at the Naval Submarine Support Facility in Groton in support of submarines, the Shippingport floating dry-dock as well as support and service craft. This is a modification to a five-year contract initially awarded in October 2006 that has a total potential value of $201.8m if all options are exercised and funded. About 270 Electric Boat employees are engaged in the work.

Additionally, Electric Boat will provide reactor-plant planning yard services for nuclear submarines and support yard services for moored training ships under a separate $18.1m contract modification.

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