General Dynamics to sustain U.S., British submarine weapons systems

The deal, announced by the Department of Defense on Wednesday, is worth more than $25.7 million and classified as a cost-plus-incentive fee contract, meaning, the price paid by the U.S. government changes in relations to costs associated with sustainment services. This reduces the risks assumed by General Dynamics, which ultimately balances the risk shared between the buyer and the seller.

General Dynamics will additionally provide training and support equipment, as well as research and development services, according to the Pentagon.

The SSBN Fire Control System delivers critical information needed to control the launch sequence of ballistic missiles.The SSGN Attack Weapon Control System is an updated version of the SSBN Fire Control System, and gives submarine combatant commanders the ability to carry out a variety of missions, according to General Dynamics.

Over 95 percent of the contract work will be performed in Pittsfield, Mass., with an estimated completion date of December 2020.

Fiscal 2017 research, development, test, and evaluation funds in the amount of $976,000, along with fiscal 2018 other procurement funds from the U.S. Navy in the amount of $22.7 million and fiscal 2018 research, development, test, and evaluation funds in the amount of $959,000 will help fund the contract.

British funds in the amount of $1.1 million are being obligated on the award as well. Funds in the amount of $976,000 will expire at the end of the current fiscal year, the Pentagon said.