Navy Modifies $18.45B Contract Awarded to GDEB, HII for Virginia-Class
Major Submarine Contract Boosts U.S. Naval Capabilities
The Naval Sea Systems Command has announced a significant contract modification to General Dynamics Electric Boat and Huntington Ingalls Industries, Newport News Shipbuilding, for the construction of two Virginia-class submarines. This contract, which also emphasizes increased workforce support and investments in nuclear shipbuilding programs, was confirmed by NAVSEA on Wednesday. Secretary of the Navy John C. Phelan highlighted the importance of risk-sharing in future contracts to ensure value for American taxpayers.
Contract Overview and Financial Details
Under the terms of the contract, General Dynamics Electric Boat (GDEB) will serve as the prime contractor and lead design yard for the Virginia-class submarines. The initial award is valued at $12.42 billion, with the potential to rise to $17.15 billion if all options are exercised. Huntington Ingalls Industries, as the major subcontractor, has been awarded $1.29 billion. Collectively, the 2024 Block V contract is estimated to be worth approximately $18.45 billion.
This latest award marks the 11th and 12th fast-attack submarines that GDEB and Huntington Ingalls will construct under the 2024 Block V program. To date, the companies have successfully built and delivered 24 Virginia-class submarines to the U.S. Navy. Most of the construction work will take place at the companies’ facilities located in Groton, Connecticut, and Newport News, Virginia, with an expected completion date set for June 2036.
Rear Adm. Jon Rucker, the program executive officer for attack submarines at the Navy, stated that efforts are ongoing to enhance construction schedules to meet the Navy’s demand for a larger and more capable fleet. Virginia-class submarines are designed to provide advanced anti-submarine and surface ship warfare capabilities, as well as support for special operations. The Naval Sea Systems Command (NAVSEA) is overseeing the contracting process for this vital defense initiative.
