Pentagon Awards $2B for New Sub Construction

The US Navy issued $2.3 billion to General Dynamics Electric Boat for long lead-time purchases and early manufacturing on the next iteration of Virginia-class fast-attack, missile-launching submarines.

The Pentagon awarded a $2.3-billion contract modification to General Dynamics Electric Boat Corp. to cover the costs of long lead-time material acquisition and early manufacturing for the Virginia-class Block VI submarines. The contract modification expands work begun following an October 2024 contract, and covers various pre-construction activities.

Most of the funding is designated for work by General Dynamics’ operation in Sunnyvale, Calif., though locations in 11 other states are also identified for smaller assignments.

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.

The Virginia-class Block VI subs will be the next-generation iteration of the Navy's nuclear-powered attack submarines, in development with a focus on advanced seabed warfare, improved stealth technologies, and launch and recover capabilities for undersea drones.

Block VI is expected to comprise a total of 10 new submarines, two of which have already been authorized for construction by, respectively, Electric Boat and Huntington Ingalls Industries Newport News Shipbuilding, with total projected cost estimated at $45–50 billion.

The first two subs of the Virginia-class Block VI have been designated the future USS Potomac (SSN-814) or USS Norfolk (SSN-815), and “keel laying” is anticipated later this year or in early 2027.

The U.S. Navy reportedly aims to achieve a production of roughly two submarines per year for the Block VI submarines, with first deliveries in the early 2030s. The recent contract modification anticipates long-lead purchasing through September 2035.

U.S. Navy planning schedules reportedly call for a transition to Block VII procurement beginning by 2031.

About the Author

Robert Brooks

Content Director

Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.

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