General Dynamics Receives $8.4 Billion Multiyear Contract for Virginia-class Submarines
GROTON, Conn. – The U.S. Navy has entered into an $8.4 billion multiyear contract with General Dynamics Electric Boat for the procurement of five Virginia-class attack submarines from FY04 through FY08. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
The contract also includes the construction of a sixth Virginia-class submarine, which was authorized in FY03. Because work on this ship is already under way, it is not part of the multiyear agreement. Altogether, Electric Boat and its teammate, Northrop Grumman Newport News, now have contracts to build 10 Virginia-class submarines.
The multiyear contract, which supercedes the six-ship block-buy contract announced on August 14, 2003, enables Electric Boat to purchase materials, parts and components for multiple ships at one time, achieving significant savings over the life of the contract. Under previous contracting approaches, the company could buy only what it needed to build one ship at a time.
“We’re grateful to the congressional delegations from Connecticut, Rhode Island and Virginia for their support,” said Electric Boat President John Casey. “Our goal remains attaining a build rate of two submarines per year, which will provide the additional production stability needed to achieve even more significant efficiencies and cost savings for the Department of Defense, the Navy and the U.S. taxpayer.”
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 67,600 people worldwide and had 2003 revenue of $16.6 billion. The company has leading market positions in land and amphibious combat systems, mission critical information systems and technologies, shipbuilding and marine systems, and business aviation.
# # #
Any "forward-looking statements" contained in this press release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Thursday, January 29, 2004
Press Contact: (860) 433-8556
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
