(By Balaseshan) General Dynamics Corp. (NYSE: GD) said its unit has received a contract modification worth $88.8 million from the U.S. Navy for Virginia-class submarine work.
General Dynamics Electric Boat will provide research and development and lead-yard services for Virginia-class nuclear-powered attack submarines. The contract has a potential cumulative value of $881 million through 2014 if all options are exercised and funded.
Under the contract, Electric Boat will undertake development studies and other work related to Virginia-class submarine design improvements. Additionally, Electric Boat will perform research and development work required to evaluate new technology to be inserted in newly built Virginia-class ships.
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In a separate release, General Dynamics Canada said it has delivered the Modular VME Acoustic Signal Processor (MVASP) on CP-140 Aurora aircraft as part of the Aurora Incremental Modernization Project (AIMP).
The AIMP is the mid-life upgrade of the Aurora aircraft operated by the Canadian Department of National Defence for surface and undersea surveillance roles.
The MVASP is the primary underwater detection system on the aircraft and is used to locate and track underwater threats. These capabilities were validated in several national and international exercises this year.
The MVASP provides concurrent acoustic processing for up to 32 sonobuoys. It can process information from any sonobuoy in fleet use today and is designed to support any mix of analog, digital, passive or active acoustic data. The MVASP features an intuitive operator interface and advanced tools that reduce operator workload while increasing situational awareness.
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GD is trading up 2.61% at $63.75 on Monday. The stock has been trading between $60.60 and $74.54 for the past 52 weeks.