General Dynamics Corp. (GD) said that its Electric Boat unit has received a contract to develop advanced submarine technologies for current and future undersea platforms. The contract awarded by the U.S. Navy is valued at $33.5 million.
Under the contract, General Dynamics’ Electric Boat unit will use the expertise of its engineering and design organization, which comprises more than 3,000 employees possessing proven technical capabilities. The unit will conduct research and development studies on technology areas relating to manufacturing, maintainability, survivability, hydrodynamics, acoustics and materials. Other areas of research would include manning, hull integrity, performance, ship control, logistics, weapons handling and safety.
General Dynamics pointed out the current modification contract is a part of its Navy contract received in November 2010. The full contract is worth up to $711.4 million over five years if all options are exercised.
Earlier this month, General Dynamics’ Electric Boat division was awarded a $1.2 billion contract from the U.S Navy for the construction of the 14th Virginia-class submarine, SSN-787.
The Virginia-class is the first U.S. Navy warship designed for the full range of mission requirements in the post-Cold War era. Virginia-class submarines displace 7,800 tons, with a hull length of 377 feet and a diameter of 34 feet. They are capable of speeds in excess of 25 knots, can dive to a depth greater than 800 feet, and attack missiles and unmanned underwater vehicles.
Overall, these submarines play an important role in the nation’s defense with their stealth, firepower and unlimited endurance and are fully optimized for maximum technological and operational flexibility.
Based in Falls Church, Virginia, General Dynamics engages in mission-critical information systems and technologies, land and expeditionary combat vehicles, armaments and munitions, shipbuilding and marine systems, and business aviation.
The shares of General Dynamics retain a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock. The company competes head-to-head with the likes of The Boeing Co. (BA) and Textron Inc. (TXT).
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