(By Balaseshan) General Dynamics Corp. (NYSE: GD), an aerospace and defense company, said its unit has received a contract worth $47.7 million from the U.S. Navy for USS Toledo maintenance and modernization work.
The U.S. Navy has awarded General Dynamics Electric Boat a contract modification to perform routine maintenance and modernization work on the USS Toledo (SSN-769), a Los Angeles-class attack submarine.
Under the terms of the contract, Electric Boat will plan and perform a dry-docking selected restricted availability, which consists of maintenance work, alterations and modernization activities required to ensure the submarine is operating at full technical capacity.
[Related -Northrop Grumman Corporation: How Defense Budget Will Fare In 2014?]
The work will take place at the Electric Boat shipyard in Groton and involve up to 300 employees. The work is scheduled for completion in September 2013.
The contract was initially award in May 2012 and has a potential value of $65 million if all options are exercised.
On Monday, General Dynamics Electric Boat has been awarded a U.S. Navy contract worth $41 million to perform non-nuclear submarine modernization and maintenance work. The contract includes four annual options. If these options were exercised, the cumulative value of the contract would be $222.3 million.
Under the contract, Electric Boat will continue operating the New England Maintenance Manpower Initiative at the Naval Submarine Base here, providing a wide range of non-nuclear overhaul, repair and modernization services in support of submarines, floating dry docks, support and service craft and other equipment at the base. About 250 Electric Boat employees will be engaged in the work.
[Related -Lockheed Martin Corporation (NYSE:LMT): How A Small Budget Deal Impacts Defense Contractors?]
GD is trading up 1.03% at $68.70 on Tuesday. The stock has been trading between $61.09 and $74.54 for the past 52 weeks.