General Dynamics Electric Boat, an operating wing of
General Dynamics Corp.
), received two modification contracts worth $16.8 million for
offering nuclear and non-nuclear maintenance work on submarines
anchored at the Naval Submarine Base in Groton, Conn.
The first contract pertains to the continued operation of the
Nuclear Regional Maintenance Department at the submarine base.
General Dynamics will offer management, planning, training and
nuclear capabilities to support upgrade, maintenance and repairs
of the submarines.
The contract is valued at $8.8 million. The original award
granted in Apr 2013 has a potential value of $164.0 million for a
period of five years.
The second contract worth $8.0 million will see Electric Boat
continuing with its New England Maintenance Manpower Initiative
at the base. This involves providing a wide range of overhaul,
repair and upgrade services to support nuclear submarines,
floating dry-docks, support and service craft and other platforms
The contract was earlier handed out in Dec 2012 and has a
potential value of over $222.3 million for the next five years.
The Electric Boat Division is particularly equipped to provide
design, construction and lifecycle support service to the U.S.
Although contracts flows were stable, the order values have
been low for General Dynamics owing to the sequestration effect.
The company last clinched a sizeable order of $209 million to buy
long lead-time material for three Virginia-class submarines in
The U.S. Navy's military presence in the Asia Pacific region,
as indicated by the 2014 defense budget, would require greater
operations and maintenance support services. This might continue
to bring in lucrative modernization contracts for General
In addition, General Dynamics' diversified business will allow
the company to book lofty defense orders in the future.
Currently, the company carries a Zacks Rank #3 (Hold).
However, other better-placed defense players at the moment
include Zacks Ranked #2 (Buy)
Lockheed Martin Corp.
Huntington Ingalls Industries Inc.
Northrop Grumman Corp.
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