General Dynamics secures $807.6 million U.S. Navy torpedo contract

General Dynamics Mission Systems (GDMS) has secured a major contract with the U.S. Navy to support the Mk 54 Lightweight Torpedo Program. The deal, finalized on December 20, has an initial value of $139.2 million, with potential to rise to $807.6 million if all options are exercised.

Under the agreement, GDMS will produce Mk 54 Mod 1 lightweight torpedo kits along with related components such as test equipment, spare parts, and provisioned item orders. The company will also deliver engineering and hardware support, ensuring seamless operation of the program.

The work will take place across six U.S. locations, including facilities in Canonsburg, Pennsylvania, and Salt Lake City, Utah, with an expected completion date of December 2027. If additional contract options are implemented, operations will extend through December 2033.

The project will serve both the U.S. Navy and several international partners through foreign military sales. Funding for the contract is sourced from multiple fiscal years, including $59.7 million from the 2024 budget, $26.5 million from the 2023 budget, and $23.6 million from the 2025 budget. An additional $3.7 million from foreign military sales has also been allocated. It is worth noting that a portion of the 2023 fiscal funds will expire at the end of the current financial year.

The Naval Sea Systems Command in Washington, D.C., awarded the contract, emphasizing its importance in enhancing the U.S. Navy’s operational capabilities. GDMS will play a key role in supplying advanced torpedo systems that are essential for maritime defense.

This contract highlights the Navy’s commitment to modernizing its fleet and equipping its forces with cutting-edge technologies to maintain strategic advantages at sea.