On Friday, the U.S. Department of Defense announced it has awarded General Dynamics' (NYSE:GD) Electric Boat Corp. subsidiary a $307.9 million "undefinitized" contract modification to a previously awarded contract. The funds are to be used to purchase long-lead-time materials needed for construction of three Virginia-class nuclear fast attack submarines: SSN 792, scheduled for procurement in 2014, and SSN 793 and SSN 794, both scheduled for procurement in 2015. (Note that the years in question refer to when Congress will officially procure money to pay for the subs, not the years they will enter service.)
Purchasing of the materials in question is expected to be complete by December 2013, but dates for the actual construction of the submarines have not yet been established.
Shares of General Dynamics closed down 1.6% ahead of the announcement on Friday, at $67.88.
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