U.S. Navy Awards General Dynamics $58 Million for Submarine Work
GROTON, Conn. - The U.S. Navy today awarded General Dynamics Electric Boat two contract modifications for submarine-related work with a total value of $58 million. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).
In the first award, Electric Boat received a contract modification for $41 million for research and development work on the Virginia-class submarine program. This award modifies a five-year, $78 million contract announced in September 2000 that will be worth $480 million if all options are exercised and funded. Under the terms of this modification, Electric Boat will perform development studies for Virginia-class design improvements, and will continue to evaluate new technologies for insertion into succeeding Virginia-class submarines. Work will be performed in Groton (94 percent); Quonset Point, R.I. (5 percent); and Newport, R.I. (1 percent). Work is expected to be completed by January 2006.
Electric Boat, teamed with Northrop Grumman Newport News, has contracts worth a total of $12.8 billion to build the first 10 ships of the class. Electric Boat delivered the lead ship, USS Virginia (SSN-774), in October 2004.
The second award is for $17 million to plan and prepare for the Drydocking Selected Restricted Availability (DSRA) of the Seawolf-class submarine USS Connecticut (SSN-22). Electric Boat will perform advance planning, design documentation, engineering, procurement, ship-checks, fabrication and preliminary shipyard work and other tasks necessary to prepare for the performance of alterations, repairs, maintenance, testing and routine work on the submarine. Work will be performed at Electric Boat’s shipyard here, and is expected to be completed by December.
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 70,200 people worldwide and had 2004 revenue of $19.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.
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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 - Friday, February 4, 2005
Press Contact: (860) 433-8556
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