Electric Boat to design new subs

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WASHINGTON, Jan. 3 (UPI) -- The U.S. Department of Defense reports that General Dynamic's Electric Boat Corp. is being awarded a contract for a new class of ballistic missile submarine.

The award from the U.S. Naval Sea Systems Command is a cost-plus-fixed-fee arrangement with special incentives. It is valued at more than $1.8 billion.

The contract covers design work and products for the new class of submarines and includes foreign military sales to Britain.

"This contract includes design work for the Ohio Replacement program and continues the design and development of the joint U.S. Navy/U.K. Common Missile Compartment; shipbuilder and vendor component and technology development; engineering integration; concept design studies; cost reduction initiatives using a design for affordability process; and full -scale prototype manufacturing and assembly," the Defense Department said.

Work on the award will be performed at company facilities in Connecticut, Virginia, Maine and Rhode Island. It is expected to be completed by September 2017, the Defense Department said.