General Dynamics (GD) awarded $1.85 billion for submarine work

Investing.com -- General Dynamics (NYSE: GD) Electric Boat Corp. has secured a $1.85 billion contract modification for Virginia-class Block VI submarines.

The Groton, Connecticut-based company received the undefinitized contract action modification to a previously awarded contract for long lead time material and preliminary construction efforts related to the submarine program.

Work on the project will be distributed across multiple states, with the largest portion (37%) to be performed in Sunnyvale, California. Other significant work locations include Tucson, Arizona and Chesapeake, Virginia, each accounting for 6% of the project.

The U.S. Naval Sea Systems Command in Washington, D.C. is overseeing the contract, which is expected to be completed by September 2035.

At the time of the award, 91% of the contract funds ($1.68 billion) will be obligated from fiscal 2025 shipbuilding and conversion funds. These funds will not expire at the end of the current fiscal year.

The contract modification is connected to a previously awarded contract numbered N00024-24-C-2110.

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