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General Dynamics Gets Potential $9.5B Contract Modification for Columbia-Class Submarine Design, Construction

General Dynamics’ (NYSE: GD) Electric Boat subsidiary has received from the U.S. Navy a potential $9.5B contract modification with an option to build two Columbia-class ballistic missile submarines.

The modification has a base amount of $869M for continued delivery of engineering and design support for the submarines, the Department of Defense said Monday.

General Dynamics Electric Boat will provide design completion support related to technical variance documentation for the SSBN 827 submarine and non-recurring design support for scope changes between SSBN 826 and SSBN 827 submarines under the modification.

The award also covers lead ship component development lead yard services; follow ship lead yard support; implementation of cybersecurity measures; U.K. Strategic Weapon Support System kit manufacturing; submarine industrial base supplier development; and expansion of the domestic missile tube industrial base.

Naval Sea Systems Command will obligate $31.9M in national sea-based deterrence funds for fiscal year 2020 at the time of award.

The service expects construction work on SSBN 826 to begin in October and on SSBN 827 in FY 2024. Work will occur in Connecticut, Rhode Island, Virginia and other locations in the U.S. through December 2031.

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