US Navy modifies submarine contract

The US Navy has awarded General Dynamics Electric Boat a $116.4m contract modification for lead-yard services, development studies and design for the Virginia-class submarine.

As part of the modified contract, Electric Boat will update the design and data of each submarine, including technology insertion, throughout the construction process. It will also provide all engineering and related lead-yard services for maintenance of the submarine, and develop upgrades for the vessel’s system design.

The original contract was awarded in October 2005, and will be worth $890m if all the options are exercised.

The contract is scheduled to end in September 2009.