Contract modification nets General Dynamics $48.2 million

The US Navy has awarded General Dynamics Electric Boat a $48.2 million modification to an existing contract for research and development work on the Virginia-Class submarine program.

The contract was initially awarded in September 2000, and could be worth $480 million over five years 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.

Electric Boat and its construction teammate, Northrop Grumman Newport News, are currently building the first four ships of the class under a $4.2 billion contract. Electric Boat will deliver the lead ship, Virginia (SSN-774), in 2004. A total of 30 submarines are planned for the class.