The U.S. Dept of Defense issued a total of $13.7 billion in contract modifications to General Dynamics Electric Boat Corp. and Huntington Ingalls Inc., Newport News Shipbuilding for construction of two FY 2024 Virginia-class nuclear submarines (SSN 812 and SSN 813), as well as funding productivity-focused updates at the respective shipyards in Groton, Conn., and Newport News, Virginia. The funding also will address some nuclear-powered vessel programs’ workforce support.
About 90% of the total amount ($12.4 billion) issued by the Pentagon was assigned to the General Dynamics unit.
“Over the past two years, we successfully worked with the Navy, Congress, and the administration to secure funds that enable us to increase wages for the nuclear-powered vessel workforce and allow for significant additional investments in capacity, shipyard processes and systems,” stated Mark Rayha, president of General Dynamics Electric Boat.
The two awards also include options that would raise the total value to $17.1 billion.
The Virginia-class subs are fast-attack, missile-armed vessels designed for anti-submarine warfare and intelligence gathering operations. The program has been underway for over two decades, and the U.S. Navy anticipates they will replace the Los Angeles-class subs over the coming decades.
Electric Boat and Newport News Shipbuilding share the lead contractor status for the new submarines, which have a current estimated unit cost of $4.3 billion.
To date, 24 Virginia-class submarines have been built and 10 are under construction currently. The U.S. Navy plans for 66 vessels over the life of the program.
