General Dynamics wins $255 million Navy contract for submarine systems

Investing.com -- General Dynamics (NYSE: GD) Mission Systems has been awarded a $255.1 million contract by the U.S. Navy for strategic weapon system fire control subsystem work.

The hybrid contract includes cost-plus-incentive-fee, cost-plus-fixed-fee, and cost-only components, with additional options valued at $485.3 million. The agreement also supports a Foreign Military Sale to the United Kingdom.

Under the contract, General Dynamics will provide fire control subsystem development, production, sustainment, modernization, repair, installation, training, and technical engineering services for U.S. SSBN (ballistic missile submarines), UK SSBN, and SSGN (guided missile submarines) fleets.

The majority of the work (87%) will be performed at the company's Pittsfield, Massachusetts facility. Additional work will take place in the United Kingdom (4%), Groton, Connecticut (3%), Quonset Point, Rhode Island (2%), Cape Canaveral, Florida (2%), Bangor, Washington (1%), and Kings Bay, Georgia (1%).

The contract period extends through June 1, 2033. Funding comes from various Navy procurement and research accounts across fiscal years 2022 through 2026, with $115.4 million being obligated at the time of award.

Strategic Systems Programs in Washington, D.C. is managing the contract, which was awarded as a sole source acquisition under U.S. procurement regulations.

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