General Dynamics Corp.’s GD business unit, Electric Boat, recently secured a modification contract involving the submarine program. The award has been provided by the Naval Sea Systems Command, Washington, D.C.

Valued at $43 million, the contract is expected to be completed by September 2024. Per the terms of the deal, General Dynamics will provide engineering and technical design effort to support Research and Development Concept Formulation for current and future submarine platforms.

Majority of the work related to this deal will be executed in Groton, CT.

What’s Favoring General Dynamics?

The changing dynamics of the military landscape and the rising geopolitical tension make it mandatory for a country to continuously evolve and strengthen its defense structure. The increased defense spending is mainly due to upgrading and improvising defense systems with technologically advanced features. To this end, military submarines and other defense ships with enhanced undersea warfare capabilities form an integral part of any nation’s defense system.

Therefore, the increased focus on military submarines is likely to benefit General Dynamics with its Electric Boat business unit being the prime contractor and lead shipyard on all Navy nuclear-powered submarine programs. The unit has established standards of excellence in the design, construction and lifecycle support of submarines for the U.S. Navy. The latest contract win is a bright example of that.

Looking ahead, General Dynamics is investing $1.8 billion of capital in expanded and modernized facilities at Electric Boat to support growth in submarine construction. It expects to substantially complete the investments by the end of 2023. Such investments are expected to enhance Electric Boat’s capability in submarine construction as well as provide lifecycle support for the same, which should enable it to win more contracts in the future.