General Dynamics subsidiary Electric Boat received a $126 million contract from the U.S. Navy to support the construction of two Virginia-class submarines.

The contract calls for the company to provide long-lead materials associated with the construction to take place in fiscal 2019. Long-lead refers to system components which take the longest time to design and fabricate, and require earlier funding than other parts of a project.

Electric Boat's contract includes work on main propulsion units, ship service generator efforts, and miscellaneous hull, mechanical and electrical system components.

Work on the contract will be performed at various locations California, New Jersey, Pennsylvania, Colorado, and others. The U.S. Department of Defense expects the work to be complete by January 2018.

Electric Boat received all funding at the time of the contract award, none of of which is set to expire at the end of the current fiscal year. The contract was not competitively procured. The Naval Sea Systems Command is the contracting activity.

Virginia-class submarines are attack vessels designed to engage enemy submarines and surface ships, as well as project power in off-shore environments. The vessels are armed with Tomahawk cruise missiles.