General Dynamics Corp. and Huntington Ingalls Industries Inc. have won up to $4.5 billion as part of three submarine contracts from the U.S. Navy, according to a Reuters report.
General Dynamics is tasked to perform research and development on a new submarine to replace the current Ohio-class vessels carrying nuclear weapons under a five-year cost-plus, fixed-fee contract valued at up to $1.99 billion, if all options are exercised.
(Click Here for more details on the GD submarine R&D contract win.)
For the second and third contracts, General Dynamics’ Electric Boat division and Huntington Ingalls’ Newport News
shipyard will receive nearly $2.5 billion to construct two smaller Virginia-class submarines.
“This contract will leverage the unique skills of Electric Boat’s submarine and design workforce in designing a capable and cost effective replacement for our Ohio class submarines, ” said Connecticut Representative Joe Courtney.
“As we move to the Asia Pacific region, submarines will become increasingly important, ” said Kendell Pease, General Dynamics spokesman.
Work will be performed primarily by General Dynamics at its Connecticut facility and the rest by Huntington Ingalls.
Both companies won a multi-year contract in fiscal 2008 to construct the last two Virginia-class submarines locked in a two-a-year production rate.
The Navy’s plan is to replace its current fleet of Ohio-class submarines with 12 new ballistic missile submarines which will begin being constructed in 2021.
