General Dynamics: $17.6B Contract for Submarines

Posted by Greg Trauthwein
Monday, April 28, 2014
The Virginia-class attack submarine Pre-Commissioning Unit (PCU) Minnesota (SSN 783) is shown during sea trials. (U.S. Navy photo courtesy of Huntington Ingalls Industries/Released)

The U.S. Navy awarded General Dynamics Electric Boat a contract valued at $17.6 billion for the construction of 10 additional Virginia-class submarines. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

The multi-year Block IV contract enables Electric Boat and its industry teammate, Newport News Shipbuilding, to proceed with the construction of two ships per year over a five-year period. Construction of the first Block IV submarine, SSN-792, will begin May 1. The 10th ship to be procured under this contract is scheduled for delivery in 2023.

Virginia-class submarines are designed from the keel up for the full range of 21st century mission requirements, including anti-submarine and surface ship warfare and special operations support. These submarines excel in littoral and open-ocean environments and collect intelligence critical to irregular warfare efforts with advanced intelligence, surveillance and reconnaissance capabilities. Unobtrusive, non-provocative and connected with land, air, sea and space-based assets, these versatile and powerful vessels are a core component of the Navy fleet and support national security interests.

Ships of the Virginia class exemplify the commitment by the Navy and industry to reduce costs without decreasing capabilities through a multi-year procurement strategy, continuous improvements in construction practices and cost-reduction design changes.

“This award has great significance for the U.S. Navy, our company and the entire submarine industrial base,” said Jeffrey S. Geiger, president of Electric Boat. “By continuing to produce two ships per year, the Navy and industry team retains the stability required to achieve increased efficiencies, providing the fleet with the submarines it needs to sustain the nation’s undersea dominance.” 

“This is the largest number of boats ordered to date in a single contract block, which is great news – particularly in light of today’s challenging economic and political environments,” said Newport News Shipbuilding President Matt Mulherin. “The Virginia-class program has already proven itself to be one of the best, if not the best, performing shipbuilding programs in the country and we look forward to continuing our important role in building these submarines.”

Electric Boat and Newport News Shipbuilding already have delivered 10 Virginia-class submarines to the Navy: USS Virginia (SSN-774), USS Texas (SSN-775), USS Hawaii (SSN-776), USS North Carolina (SSN-777), USS New Hampshire (SSN-778), USS New Mexico (SSN-779), USS Missouri (SSN-780), USS California (SSN-781), USS Mississippi (SSN-782) and USS Minnesota (SSN-783). Eight additional submarines are under construction.

Virginia-class submarines displace 7,800 tons, with a hull length of 377 feet and a diameter of 34 feet. They are capable of speeds in excess of 25 knots and can dive to a depth greater than 800 feet, while carrying Mark 48 advanced capability torpedoes, Tomahawk land-attack missiles and unmanned underwater vehicles. 

 
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Ensco plc Reports 3Q, 2014 Results

Ensco plc  today reported earnings per share from continuing operations of $1.93 in third quarter 2014, up 16% from $1.66 in third quarter 2013. Adjusted for a $0.

Chevron Announces Quarterly Dividend

The Board of Directors of Chevron Corporation today declared a quarterly dividend of one dollar and seven cents ($1.07) per share, payable December 10, 2014,

Exmar Optimistic About Gas Carrier Market into 2015

Belgian gas shipping group Exmar said on Thursday that the market for its very large and midsize gas carriers was at historically high levels in the third quarter

News

USCG Cutter Diligence Returns

The crew of Coast Guard Cutter Diligence returned to Wilmington following a 45-day patrol in the Caribbean Sea. While on patrol, Diligence served as the

Southern California Port Congestion

Hapag-Lloyd informs about the congestion at the ports of Los Angeles and Long Beach that has reached a critical point. I. Several container ships are anchoring

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

Marine Equipment

USCG Cutter Diligence Returns

The crew of Coast Guard Cutter Diligence returned to Wilmington following a 45-day patrol in the Caribbean Sea. While on patrol, Diligence served as the

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

Ensco plc Reports 3Q, 2014 Results

Ensco plc  today reported earnings per share from continuing operations of $1.93 in third quarter 2014, up 16% from $1.66 in third quarter 2013. Adjusted for a $0.

Maritime Safety

USCG Cutter Diligence Returns

The crew of Coast Guard Cutter Diligence returned to Wilmington following a 45-day patrol in the Caribbean Sea. While on patrol, Diligence served as the

Industrial Pressure Washers Kill Viruses

Water Cannon pressure washers utilized to fight influenza - clean and sanitize large areas Water Cannon Pressure Washers deliver a wide swath of low pressure 180 degree F.

Partnerships Key to Caribbean Maritime Security

Planning and execution of port and maritime safety and security in Caribbean region is all about partnerships Maritime security and safety experts are meeting in Nassau,

Vessels

USCG Cutter Diligence Returns

The crew of Coast Guard Cutter Diligence returned to Wilmington following a 45-day patrol in the Caribbean Sea. While on patrol, Diligence served as the

Southern California Port Congestion

Hapag-Lloyd informs about the congestion at the ports of Los Angeles and Long Beach that has reached a critical point. I. Several container ships are anchoring

GAC Starts Green Hull Cleaning Operations in Oman

Oman’s Ministry of Environment and Climate Affairs has granted GAC EnvironHull permission to conduct underwater hull cleaning operations using the brush-and-diver-free

 
 
Maritime Security Maritime Standards Navigation Offshore Oil Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2112 sec (5 req/sec)