General Dynamics [GD] awarded BAE Systems a contract to start work associated with the production of Virginia Payload Module (VPM) tubes for the U.S. Navy’s Block V Virginia-class (SSN 774) submarines, BAE said Oct. 27.

This first award for the VPM funds work surrounding certification, special tooling, and other items related to production readiness.

The VPM is an additional mid-body section being integrated into Virginia-class submarines, starting with the second boat of Block V. It contains four large-diameter payload tubes, each capable of storing and launching up to seven Tomahawk cruise missiles and the potential integration of future payloads.

Joe Senftle, vice president and general manager of weapon systems at BAE, highlighted the VPM will add a potential 28 missiles to each Virginia-class submarine, tripling their current payload strike capacity.

“Increasing the firepower of the Virginia class is a cost-effective way for the Navy to maintain its strike capability after its four SSGN guided missile submarines retire,” Senftle said in a statement.

The initial award work will be performed at BAE’s facility in Louisville, Ky. Later contracts for launch tube production are expected as early as 2017, with final deliveries through 2019.