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Columbia-class submarine

General Dynamics Electric Boat Gets $9.5B Navy Contract Modification for Two Columbia-Class Submarines

General Dynamics’ (NYSE: GD) Electric Boat business has received a potential $9.47B contract modification to build and test the first two Columbia-class ballistic missile submarines and provide related design and engineering services. 

Electric Boat will carry out about 78 percent of construction work and build at its facility in Quonset Point, Rhode Island, four of the six supermodules, which will be moved to the company’s final test and assembly yard in Groton, Connecticut, for integration with other components, General Dynamics said Thursday. 

"Electric Boat has been making preparations for construction of the Columbia class for nearly a decade, including advancing the design of this critical Navy asset, hiring and training thousands of skilled tradespeople, modernizing our facilities and helping to bolster the supply base," said Kevin Graney, president of General Dynamics Electric Boat. "We are grateful for the unwavering support of the Navy and Congress in securing funding to avoid disruption of this critical program." 

The Department of Defense said the modification to the previously awarded integrated product and process development contract supports the construction of the lead ship SSBN 826 in fiscal year 2021 and advance procurement and construction of the second submarine, SSBN 827, in FY 2024. 

Naval Sea Systems Command will obligate $545.2M in FY 2021 National Sea-Based Deterrence Funds and $19.9M in FY 2020 NSBDF at the time of award and expects work to occur in Connecticut, Rhode Island, Virginia and other sites in the U.S. through April 2030. 

The Columbia program will replace the Navy’s Ohio-class submarines and ships under this program will have a life-of-ship fuel core to eliminate the need for midservice refueling activities. General Dynamics Electric Boat is expected to hand over the lead ship to the service in 2027.

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