(By Balaseshan) General Dynamics Corp. (NYSE: GD), an aerospace and defense company, said its subsidiary has received a contract worth $70.5 million to provide planning yard services for DDG 51 and FFG 7 ships.
The U. S. Navy has awarded General Dynamics Bath Iron Works a contract to provide ongoing planning yard services for the DDG 51 Arleigh Burke-class guided missile destroyer and the FFG 7 Oliver Hazard Perry-class frigate programs.
This option modifies a contract initially awarded in June 2012. The period of performance is December 31, 2012, through December 29, 2013.
Bath Iron Works manages post-delivery maintenance and modernization activities for all DDG 51-class ships and all FFG 7-class ships, including design, material kitting, logistics, planning and execution.
The company is currently supporting 84 ships in the fleet. The majority of work is performed in Maine, with activity in Norfolk, Virginia; Mayport, Florida; San Diego; Everett, Washington; Pearl Harbor, Hawaii; and Yokosuka, Japan.
"The exercise of this contract option demonstrates the Navy's continued confidence in Bath Iron Works' ability to provide critical support to its fleet of destroyers and frigates," said Jeff Geiger, president of Bath Iron Works.
Bath Iron Works said through this program, about 400 engineers, designers, logistics and materials specialists, as well as mechanics, will provide the U.S. Navy with high-quality, affordable post-delivery and modernization services to help ensure that the ships of the Navy's surface combatant fleet are ready to be deployed when needed.
GD is trading down 1.29% at $66.02 on Thursday. The stock has been trading between $61.09 and $74.54 for the past 52 weeks.