Pentagon Awards General Dynamics and Austal $727 Million for LCS, Submarine Work
The Department of Defense awarded nine separate defense contracts Monday, worth $1.6 billion in total. Among these, two contracts went to General Dynamics and Australian shipbuilder Austal , its partner in building half the U.S. Navy's fleet of Littoral Combat Ships, or LCSes.
Austal won the larger of the two contracts, a $683.7 million contract to perform basic seaframe construction on two LCSes, purchase select systems equipment for installation aboard the vessels, and integrate and test this equipment. This contract will run through June 2018.
Austal/General Dynamics' version of the LCS, as seen above in the second ship of the LCS line, USS Independence (LCS-2), deviates from the standard "monohull" concept of warship design. It uses a "trimaran" design that is expected to give the vessel more stability and allow it to move at greater speeds, and supports a wider flight deck for helicopter and UAV operations. Displacing 3,100 tons, the vessel measures 418 feet in length, carries a crew of from 40 to 75 sailors, and can carry up to two helicopters aboard. In addition, these LCSes are designed to carry various mission modules which can be switched out as needed to tailor the vessel to the missions it will be expected to perform on any given voyage.
Today's funding does not cover the entire cost of building General Dynamics' two vessels, which are expected to cost approximately $670 million each.
Separately, General Dynamics was awarded a second contract Monday through its Electric Boat subsidiary. Electric Boat was awarded a $57.2 million contract modification to prepare for "post-shakedown" maintenance, repair, alteration, testing, and other work on the nuclear attack submarine USS Minnesota, which was commissioned last year. This work is expected to continue through February 2015.
The article Pentagon Awards General Dynamics and Austal $727 Million for LCS, Submarine Work originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of General Dynamics. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.