The U.S. Navy awarded a $14 billion contract to General Dynamics Corp and Northrop Grumman Corp. for eight Virginia-class submarines, the Pentagon said Monday.

The multiyear contract will mean the production of one submarine in 2009, one in 2010 and two submarines in each of the following three years, the government said.

The submarines will be built by General Dynamics’ Groton, Conn.-based subsidiary Electric Boat in a partnership with Northrop Grumman Corp. Work will be done at shipyards that include Electric Boat’s Groton plant and Northrop’s Newport News, Va., facility.

–

Read the full

Reuters

story.