Navy awards two-ship Virginia-class submarine contract modification

U.S. Navy photograph

Naval Sea Systems Command has awarded a two-ship contract modification on the existing Virginia-class submarine Block V contract to General Dynamics Electric Boat (GDEB) for the construction of two FY 2024 Virginia-class submarines.

The award continues the Virginia-class submarine teaming arrangement between prime contractor GDEB in Groton, Conn., and the major subcontractor Huntington Ingalls Shipbuilding, Newport News Shipbuilding (HII-NNS) in Newport News, Va. To date, the Navy has taken delivery of 24 Virginia-class submarines, with an additional 16 now under contract.

General Dynamics Electric Boat Corp. is being awarded $12,418,145,463, and if all options are exercised the total value will be $17,152,265,971; and Huntington Ingalls Inc., Newport News Shipbuilding, is being awarded $1,293,694,000. These contracts include options thar, if exercised, would bring the cumulative value of the contract change to $18,445,959,971. The awarded amounts include previously announced material awards (including long lead time material and economic ordering quantity material) totaling $2,103,896,000.

“We recently re-negotiated the planned contract to deliver this critical capability, and appropriately share risk between the Navy and industry,” said Secretary of the Navy John C. Phelan. “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 modifications were also awarded to both GDEB and HII-NNS, to increase workforce support and investment across nuclear shipbuilding programs.

“By investing in the nuclear shipbuilding workforce—which is a national strategic asset—we are working with our industry partners to deliver on this most critical future requirement,” said Dr. Brett Seidle, acting Assistant Secretary of the Navy for Research, Development & Acquisition.

“The contract award is the result of a highly coordinated contracting effort across the nuclear shipbuilding enterprise, to promote stability at critical suppliers as the submarine industrial base ramps up to meet a historic increase in demand for submarine production,” said Program Executive Officer, Attack Submarines, Rear Adm. Jon Rucker. “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.”