GD Electric Boat secures $62m contract modification for Common Missile Compartment development

The U.S Navy has awarded General Dynamics Electric Boat a $61.7 million contract modification for the continued development of the Common Missile Compartment for the United Kingdom's Successor ballistic-missile submarine and the U.S. Ohio replacement submarine, the Company press release said. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

Under the modification, Electric Boat will procure, manufacture and test prototype material and equipment to be used in the production of the Common Missile Compartment.

The award modifies a contract announced in December 2008 for engineering, technical services, concept studies and design of a Common Missile Compartment for the next-generation ballistic missile submarines being developed for the Royal Navy and the U.S. Navy. If all options are exercised and funded, the overall contract would have a value of more than $776 million.

This work will engage Electric Boat's engineering and design organization, which comprises more than 4,000 employees. Possessing proven technical capabilities, these employees work on all facets of the submarine life cycle from concept formulation and design through construction, maintenance and modernization, and eventually to inactivation and disposal.