WASHINGTON (AP) -- A top Navy official says the service is close to awarding another multibillion-dollar contract to General Dynamics and Northrop Grumman for more Virginia class submarines.
Deputy Assistant Secretary of the Navy for ship programs Allison Stiller says the service will make the award for eight more submarines "soon." A formal announcement is expected as early as next week.
General Dynamics' subsidiary Electric Boat has partnered with Northrop Grumman's Newport News shipyard in Virginia to build one submarine a year for the Navy. Production under the new deal will double to two ships annually in 2011.
The companies so far have received $12.6 billion for the first 10 submarines.