The U.S. Navy has awarded General Dynamics Electric Boat a $5.1 billion Integrated Product and Process Development (IPPD) contract to complete the design of the lead Columbia-class submarine, the nation's next-generation sea-based strategic deterrent. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

"Working closely with the Navy and the submarine industrial base, Electric Boat will continue to lead critical aspects of the Columbia-class development effort, including design, material procurement, construction and operating-cost reduction, to achieve an affordable and effective program," said Electric Boat President Jeffrey S. Geiger.

The IPPD contract includes funding for component and technology development as well as continued development of the Common Missile Compartment, which will be integrated into both the Navy's new SSBN and the Royal Navy's Dreadnought-class strategic missile submarine.

Construction of the lead Columbia-class submarine is scheduled to begin in the fall of 2020. The Navy plans to build a fleet of 12 new SSBNs.

The contract announced today follows a five-year, $1.85 billion award Electric Boat received in December 2012 to perform research and development work for the Navy's new class of ballistic-missile submarines.

General Dynamics Electric Boat has established standards of excellence in the design, construction and lifecycle support of U.S. Navy submarines. In its position as an industry leader, Electric Boat remains committed to applying its technical strengths and business expertise to effectively manage the challenges of nuclear-submarine production. The company's three primary locations are in Grotonand New London, Conn.; and Quonset Point, R.I. Its current workforce is approximately 15,800 employees.

For more information about Electric Boat, please visit www.gdeb.com.

For more information about General Dynamics, please visit www.generaldynamics.com.