March 13 (UPI) -- General Dynamics has been awarded a contract by the U.S. Navy to support construction of the next four Virginia-class submarines.
The deal, announced Monday by the Department of Defense, is valued at more than $696.2 million under the terms of a cost-plus-fixed-fee modification to a previous award contract.
The agreement between the U.S. Navy and General Dynamics that taps the company to provide additional long lead time material in support for two Virginia-class submarines in fiscal year 2019 and two Virginia-class submarines in fiscal 2020.
The long lead time material is for "steam and electric plant components, the main propulsion unit efforts and ship service turbine generator efforts, and miscellaneous hull, mechanical and electrical system components to support SSNs 802, 803, 804 and 805 ship construction commencing in fiscal 2019," the Pentagon said in a press release.
The Virginia-class is a nuclear-powered fast attack submarine that will replace the Navy's older Los Angeles-class fast attack submarines.
Work will occur in multiple locations across the United States and is expected to be complete by January 2019.
The total amount of the contract will be obligated to General Dynamics from Navy fiscal 2018 shipbuilding and conversion funding and the more than $696.2 million will not expire at the end of the current fiscal year, according to the Defense Department.