General Dynamics secures USD 807.6 million U.S. Navy Contract for Mk 54 torpedo program

The contract covers the production of Mk 54 Mod 1 lightweight torpedo kits along with associated items such as test equipment, spares, and provisioned item orders. GDMS will also provide engineering and hardware support, ensuring comprehensive backing for the torpedo programme.

Work will be conducted across six U.S. locations, including Canonsburg, Pennsylvania, and Salt Lake City, Utah, and is expected to run until December 2027. If all contract options are exercised, the total value will increase to USD 807.6 million, with the completion date extending to December 2033.

The contract supports both the U.S. Navy and foreign military sales, with funding sourced from several fiscal budgets. The Naval Sea Systems Command in Washington, D.C., has allocated USD 59.7 million from fiscal 2024 funds, USD 26.5 million from fiscal 2023 funds, and USD 23.6 million from fiscal 2025 funds. Additionally, USD 3.7 million will be provided through foreign military sales, with a portion of the fiscal 2023 funds set to expire at the close of the current financial year.