Navy awards two-ship Virginia-class submarine contract modification
U.S. Navy Awards Major Submarine Contract
The Naval Sea Systems Command has announced a significant contract modification to the existing Virginia-class submarine Block V program, awarding General Dynamics Electric Boat (GDEB) a contract for two new submarines for fiscal year 2024. This decision reinforces the collaboration between GDEB and its major subcontractor, Huntington Ingalls Shipbuilding, as the Navy continues to expand its fleet. With 24 Virginia-class submarines already delivered and 16 more under contract, this latest award marks a crucial step in enhancing the U.S. Navy’s underwater capabilities.
Contract Details and Financial Implications
The contract awarded to General Dynamics Electric Boat is valued at approximately $12.4 billion, with the potential to reach over $17 billion if all options are exercised. Huntington Ingalls Inc. will receive $1.29 billion as part of this agreement. The total cumulative value of the contract could rise to nearly $18.5 billion, which includes previously announced material awards totaling over $2 billion. This financial commitment underscores the Navy’s dedication to maintaining a robust submarine fleet while ensuring efficient use of taxpayer dollars.
Secretary of the Navy John C. Phelan emphasized the importance of risk-sharing in this contract, stating, “We recently re-negotiated the planned contract to deliver this critical capability, and appropriately share risk between the Navy and industry.” This approach aims to enhance future contracts by ensuring that both the Navy and its contractors are aligned in their objectives and responsibilities.
In addition to the primary contract, modifications were also made to increase workforce support and investment in nuclear shipbuilding programs. Dr. Brett Seidle, acting Assistant Secretary of the Navy for Research, Development & Acquisition, highlighted the strategic importance of investing in the nuclear shipbuilding workforce, calling it a national asset. This investment is crucial for meeting the growing demands of submarine production as the Navy seeks to bolster its operational capabilities.
Strategic Goals and Future Outlook
Rear Adm. Jon Rucker, Program Executive Officer for Attack Submarines, noted that the contract award reflects a coordinated effort across the nuclear shipbuilding sector. He stated, “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.” This commitment to enhancing the submarine industrial base is vital as the Navy prepares for an unprecedented increase in demand for submarine production.
The collaboration between GDEB and Huntington Ingalls Shipbuilding is expected to promote stability among critical suppliers, ensuring that the Navy can meet its future operational requirements. As the U.S. Navy continues to adapt to evolving global threats, these contracts play a pivotal role in maintaining a strong and capable fleet of Virginia-class submarines.
