Stock Markets January 30, 2026

General Dynamics Mission Systems Secures $255.1 Million Navy Contract for Submarine Fire Control Work

Hybrid award covers development, production and sustainment of fire control subsystems for U.S. and U.K. ballistic and guided missile submarines

By Avery Klein GD
General Dynamics Mission Systems Secures $255.1 Million Navy Contract for Submarine Fire Control Work
GD

General Dynamics Mission Systems received a $255.1 million hybrid contract from the U.S. Navy to provide development, production, sustainment, modernization and related services for strategic weapon system fire control subsystems serving U.S. SSBNs, U.K. SSBNs and SSGNs. The award includes options valued at $485.3 million, funding across fiscal years 2022-2026, and work concentrated at the Pittsfield, Massachusetts facility through June 1, 2033.

Key Points

  • General Dynamics Mission Systems won a $255.1 million hybrid contract to perform development, production, sustainment, modernization, repair, installation, training, and technical engineering services for fire control subsystems.
  • The award includes options worth $485.3 million and supports a Foreign Military Sale to the United Kingdom, with $115.4 million obligated at the time of award.
  • Work is concentrated in Pittsfield, Massachusetts (87 percent) and will run through June 1, 2033, with additional activity across several U.S. locations and the U.K.; Strategic Systems Programs in Washington, D.C. is managing the sole source award.

General Dynamics Mission Systems has been awarded a $255.1 million contract by the U.S. Navy to perform work on strategic weapon system fire control subsystems, the company announced. The agreement is structured as a hybrid contract, combining cost-plus-incentive-fee, cost-plus-fixed-fee, and cost-only components, and carries additional options worth $485.3 million.

The scope of the contract encompasses a broad suite of activities: development, production, sustainment, modernization, repair, installation, training, and technical engineering services. These efforts will support fire control subsystems aboard U.S. SSBN (ballistic missile submarines), U.K. SSBN vessels under a Foreign Military Sale arrangement, and SSGN (guided missile submarine) fleets.

Most of the work - 87 percent - will be executed at General Dynamics Mission Systems' facility in Pittsfield, Massachusetts. Other work locations identified in the award include the United Kingdom (4 percent), Groton, Connecticut (3 percent), Quonset Point, Rhode Island (2 percent), Cape Canaveral, Florida (2 percent), Bangor, Washington (1 percent), and Kings Bay, Georgia (1 percent).

The contract performance period extends through June 1, 2033. Funding for the award is drawn from a variety of Navy procurement and research accounts spanning fiscal years 2022 through 2026. At the time the contract was awarded, $115.4 million in funds were obligated.

Strategic Systems Programs, located in Washington, D.C., is managing the contract. The award was made as a sole source acquisition in accordance with U.S. procurement regulations. The contract also explicitly supports a Foreign Military Sale to the United Kingdom.


Context and implications

  • The contract covers a complete lifecycle of fire control subsystem work, from engineering and development to sustainment and installation, indicating long-term service and upgrade responsibilities.
  • Geographic distribution of work concentrates production in Pittsfield while retaining testing, installation, or support activities at multiple U.S. submarine ports and a U.K. site.
  • Funding spans multiple fiscal years, reflecting staged obligations and program budget profiles across 2022-2026, with a significant initial obligation recorded at award.

Operational details

The award specifies both U.S. and allied fleet applications: U.S. SSBNs and SSGNs and U.K. SSBNs under a Foreign Military Sale. Required activities include repairs and modernization in addition to new production and training, indicating a combination of platform updates and ongoing support obligations through the contract period ending in mid-2033.

No competing bids are referenced; the contract was awarded on a sole source basis and will be overseen by Strategic Systems Programs in Washington, D.C. The contract’s financial structure - a mix of cost-plus-incentive-fee, cost-plus-fixed-fee, and cost-only elements - reflects differentiated payment mechanisms tied to performance and allowable costs for different portions of the work.

Risks

  • The long duration of the contract through June 1, 2033 introduces execution risk across multiple years of performance and funding cycles, affecting defense and shipbuilding suppliers.
  • A sole source acquisition may carry programmatic or schedule risks tied to a single prime contractor, which could impact timelines for submarine modernization and sustainment.
  • Funding is allocated across fiscal years 2022-2026; variability in future appropriations or account allocations could affect the timing and pace of work, with implications for defense procurement budgets.

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