General Dynamics Electric Boat Secures $1.076 Billion Contract

General Dynamics Electric Boat Secures $1.076 Billion U.S. Navy Contract for Virginia-Class Submarines


General Dynamics Electric Boat, a business unit of General Dynamics, has recently been awarded a significant contract modification from the U.S. Navy. The $1.076 billion contract will facilitate long-lead-time material procurement and advanced construction for Virginia-class fast-attack submarines. This development marks a crucial step forward in strengthening the submarine industrial base and increasing production volume.

Long-Lead-Time Material and Advanced Construction

Under the contract modification, Electric Boat will utilize the $1,075,896,000 in advance procurement funds to acquire essential materials and major components for the construction of hulls 812 and 813. This investment will enable Electric Boat to prepare for the construction of submarines in Block V of the Virginia class, demonstrating their commitment to meeting the 21st-century mission requirements set by the U.S. Navy.

Enhancing the Submarine Industrial Base

Kevin Graney, the president of General Dynamics Electric Boat, highlights the contract modification as a crucial demand signal to the submarine industrial base. The award provides a significant boost to suppliers, allowing them to invest in increasing production capacity and acquiring the necessary materials.

Virginia-Class Submarines Designed for 21st-Century Missions

The Virginia-class submarines, constructed by Electric Boat in collaboration with Newport News Shipbuilding (a division of HII), are meticulously designed to meet the full range of 21st-century mission requirements. These submarines excel in anti-submarine and surface ship warfare, as well as providing special operations support. The commitment of both the Navy and the industry to reduce costs while maintaining capabilities is realized through a multi-year procurement strategy, continuous construction improvements, and cost-reduction design changes.

Boosting Efficiency and Cost-Effectiveness

The partnership between Electric Boat and Newport News Shipbuilding plays a pivotal role in the construction of Virginia-class submarines. By combining their expertise and resources, these companies aim to reduce costs without compromising capabilities. Through ongoing improvements in construction practices and cost-reduction design changes, they ensure that the Virginia-class submarines remain at the forefront of modern naval technology. This commitment to efficiency and cost-effectiveness reinforces the Navy's ability to strengthen its submarine fleet.

Members of LevelFields received the alert of this event on May 23, 7:25 PM ET

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