The Naval Sea Systems Command has awarded a contract modification to General Dynamics Electric Boat and Huntington Ingalls Inc., Newport News Shipbuilding for the construction of two Virginia-class submarines. The contract also includes increased workforce support and further investments in nuclear shipbuilding programs, NAVSEA said Wednesday.
“We recently re-negotiated the planned contract to deliver this critical capability, and appropriately share risk between the Navy and industry,” commented John C. Phelan, secretary of the Navy. “We will be looking at all future contracts with a similar lens to ensure the appropriate level of risk sharing and value to the American taxpayer.”
Contract Details
GDEB, as the prime contractor and lead design yard for the Virginia-class submarine, received $12.42 billion, which could increase to $17.15 billion if all options are exercised. Meanwhile, HII-NNS, as the major subcontractor, was awarded $1.29 billion.
In total, the 2024 Block V contract is estimated to be worth $18.45 billion.
The award marks the 11th and 12th fast-attack submarines that GDEB and HII-NNS will build under the 2024 Block V. To date, the companies have built and delivered 24 Virginia-class submarines to the Navy.
The majority of work will be performed at the companies’ facilities in Groton, Connecticut, and Newport News, Virginia. The expected completion date is in June 2036.
“We are continuing to work closely with the shipbuilders to improve construction schedules to support the Navy’s need for a larger more lethal force,” according to Rear Adm. Jon Rucker, program executive officer for attack submarines at the Navy.
Virginia-class submarines provide anti-submarine and surface ship warfare capabilities and special operations support.
NAVSEA serves as the contracting activity.
