General Dynamics $73M Contract to Support Naval Sub Base

Thursday, October 14, 2010

General Dynamics Electric Boat has been awarded two contract modifications by the U.S. Navy to provide a range of services in support of nuclear submarines and related facilities and equipment at the Naval Submarine Base in Groton. The modifications are worth a combined $72.6m. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Under the terms of a $45.6m modification, Electric Boat will continue to perform non-nuclear submarine modernization and repair services at the Naval Submarine Support Facility in support of submarines, the Shippingport floating dry-dock as well as support and service craft. About 270 Electric Boat employees are engaged in the work.  Initially awarded in October 2006, the five-year contract being modified has a potential value of $201.8m if all options are exercised and funded.

The second contract modification, worth $27m, calls for Electric Boat to continue operating the Nuclear Regional Maintenance Department (NRMD) at the submarine base, providing services in support of planned and emergent nuclear maintenance and repairs for operational submarines. A core group of 25 Electric Boat employees are assigned to the NRMD, with surge groups of up to 100 workers for short periods.  This contract was awarded in October 2009 and has a potential value of $78m over three years.
 

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