Electric Boat Receives $1.35B Contract Modification

Tuesday, January 31, 2006
The U.S. Navy awarded General Dynamics Electric Boat a $1.35 billion contract modification that provides funding for the construction of the eighth Virginia-class submarine and advance procurement for the ninth and 10th ships of the class. The award modifies an August 2003 contract for the construction of six Virginia-class submarines at a rate of one per year from FY 03 through FY 08; the total value of the contract is $8.4 billion. Altogether, Electric Boat and its construction teammate, Northrop Grumman, have received contracts to build 10 ships of the class. The lead ship, USS Virginia (SSN-774), was delivered to the Navy in October 2004. The contract modification has been factored into the company's workload projections since the initial contract was announced in 2003. It is not unplanned work. For that reason, it will not affect the number of layoffs the company will make over the next two years. The contract modification provides $1.1 billion for construction of SSN- 781, $208 million in advance procurement for SSN-782 and $40 million for SSN- 783. Fifteen percent of the work will be performed at Electric Boat's Groton shipyard; 15 percent at its Quonset Point, R.I., facility; 30 percent at Northrop Grumman in Newport News, Va.; and 40 percent at various sites throughout the U.S. Work under the overall contract is scheduled for completion in 2014 when SSN-783 is delivered.
Maritime Reporter October 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

US Senators Introduce Bill to Limit Offshore Drilling

A group of U.S. Senators on the West Coast have introduced a bill Wednesday aiming to prohibit offshore drilling on the outer continental shelf of California, Oregon and Washington.

Foss Hires VP, General Counsel & Chief Ethics Officer

Foss Maritime announced that Lam Q. Nguyen-Bull has joined the company as the Vice President, General Counsel and Chief Ethics Officer.   Based in Seattle, Nguyen-Bull

French President Inaugurates CMA CGM’s New Mega Ship

The CMA CGM Bougainville, the largest containership sailing under French flag, was inaugurated Tuesday by French President François Hollande in Le Havre.   Other


Asia-N.Europe Box Rates Plunge 17 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe fell 17.3 percent to $259 per 20-foot container (TEU) in the week ended on Friday,

Traders Eye Floating Diesel Storage in Atlantic

Europe diesel stocks reach fresh record high; huge imports from Asia, Middle East weigh on supplies. Oil traders are preparing to store diesel in giant tankers

Shell Want Shipper Guarantees on Nigerian Crude Exports

Royal Dutch Shell has asked ship owners exporting its Nigerian oil to sign a "letter of comfort" (LoC) to guarantee it is not stolen, according to an email from the company seen by Reuters.

Maritime Security Maritime Standards Navigation Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1529 sec (7 req/sec)