General Dynamics Secures $323M Deal to Support Submarine Program

General Dynamics Corp. has won a $322.6 million contract with the Naval Sea Systems Command to provide engineering, technical, design agent and planning yard support for strategic and attack submarines. The majority of work will be executed in Groton, CT, and the contract is projected to be completed by September 2025. The demand for naval modernization programs and submarine lifecycle support services is driving the growth of General Dynamics' Electric Boat unit.

General Dynamics Corp. (NYSE: GD) has secured a significant contract from the U.S. Department of Defense, with Electric Boat Corp. (EB) being awarded a $322.6 million contract modification. The contract, awarded by the Naval Sea Systems Command, involves providing engineering, technical, design agent, and planning yard support for strategic and attack submarines [1].

The work will primarily be executed in Groton, Connecticut, with 70% of the tasks taking place there. Additional work will be conducted in Kings Bay, Georgia (13%), Bangor, Washington (10%), Pearl Harbor, Hawaii (3%), and Rhode Island locations including North Kingston (2%) and Newport (2%) [1]. The project is scheduled to be completed by September 2025.

Funding for the contract comes from various Navy sources, including fiscal 2025 other procurement funds totaling $16.5 million (53%), operations and maintenance funds of $14.3 million (46%), and research, development, test and evaluation funds of $367,000 (1%) [1]. The Naval Sea Systems Command in Washington, D.C., is serving as the contracting activity for this project.

The demand for naval modernization programs and submarine lifecycle support services is driving the growth of General Dynamics' Electric Boat unit. The company is committed to fostering the growth and development of talented engineering graduates through its Shipyard Operations Leadership Program [2]. This program aims to provide participants with the necessary skills, knowledge, and experiences to become future leaders in shipyard operations.

The contract is a testament to General Dynamics' expertise and the increasing demand for advanced submarine support services. As the U.S. Navy continues to modernize its fleet, the need for high-quality engineering and technical support services will remain robust, positioning General Dynamics Electric Boat as a key player in this market.

References:
[1] https://www.investing.com/news/stock-market-news/general-dynamics-electric-boat-awarded-3226-million-navy-contract-93CH-4183951
[2] https://www.gd.com/careers/shipyard-operations-leadership-program-groton-ct-us-2025-15565-eb-opportunity