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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Anglo-Eastern Signs Turbocharger Maintenance Deal

MAN PrimeServ Turbocharger, part of MAN Diesel & Turbo’s service division, has signed a Premium Turbocharger Maintenance Contract with Anglo-Eastern Ship Management.

Electric & Hybrid Propulsion Ordered fir CMAL Ferry

Imtech Marine informs it has been awarded a third contract to supply the electric and hybrid propulsion system for a hybrid ferry operated by Caledonian Maritime Assets Ltd (CMAL) of Scotland.

Asia Dry Bulk-Capesize Rates Mixed on Uncertainty

Capesize rates slide after hitting 5-month high. Rates for capesize bulk carriers eased this week after hitting their highest since December, and could come

Finance

HSH Nordbank Looking to Split Off Bad Shipping Loans

HSH Nordbank AG, the world’s second-largest financier of ships, plans to split off a "bad bank" for non-performing shipping loans as part of a plan to create a sustainable business model,

Navios in Red, but Beats Estimates

Navios Maritime Holdings, vertically integrated seaborne shipping and Logistics Company, slumped to a loss in the Q1 although the result beat by $0.10 per share

Carrier Schedule Reliability Improves in April

Transport consultant Drewry’s Carrier Performance Insight (CPI) for April records 67.6%, up by 4.1 percentage improvement on the previous month in the aggregate

News

Maersk Line Gets New Head in China

Maersk Line on May 21 announced that Mike Fang become the company's new chief of east - and central China. He joins with effect from 1 July 2015.    Fang has

HSH Nordbank Looking to Split Off Bad Shipping Loans

HSH Nordbank AG, the world’s second-largest financier of ships, plans to split off a "bad bank" for non-performing shipping loans as part of a plan to create a sustainable business model,

Navios in Red, but Beats Estimates

Navios Maritime Holdings, vertically integrated seaborne shipping and Logistics Company, slumped to a loss in the Q1 although the result beat by $0.10 per share

Marine Equipment

Registration for SHIPPINGInsight 2015 Now Open

Online registration is now open for the SHIPPINGInsight 2015 Fleet Optimization Conference & Exhibition.   Now entering its fourth year, SHIPPINGInsight is an

Anglo-Eastern Signs Turbocharger Maintenance Deal

MAN PrimeServ Turbocharger, part of MAN Diesel & Turbo’s service division, has signed a Premium Turbocharger Maintenance Contract with Anglo-Eastern Ship Management.

Electric & Hybrid Propulsion Ordered fir CMAL Ferry

Imtech Marine informs it has been awarded a third contract to supply the electric and hybrid propulsion system for a hybrid ferry operated by Caledonian Maritime Assets Ltd (CMAL) of Scotland.

Maritime Safety

New Flag Program Honors US Merchant Marines

The U.S. Department of Transportation’s Maritime Administration (MARAD) announced the launch of the United States Merchant Marine Flag Program, which will provide U.

Malaysia Orders Migrant Rescues, Thailand Says No to Shelters

Malaysian Prime Minister Najib Razak said on Thursday he had ordered the navy to conduct search and rescue missions for thousands of migrants adrift at sea as Thailand's

US: South China Sea Reclamations Stoke Instability

China's land reclamation around reefs in the disputed South China Sea is undermining freedom and stability, and risks provoking tension that could even lead to conflict, U.

Vessels

ERMA Bullish on Ballast Water Treatment

After having delivered several BWTS systems in Kita Nihon shipyard in Japan, one more ERMA FIRST BWTS was successfully installed onboard the Bulk Carrier M/V SCARABÉ(DWT: 60,

Iran Aid Ship Reaches Djibouti Waters, Waits to Enter Port

An Iranian aid ship has reached the outskirts of Djibouti's port and is waiting for a permit to enter after Tehran agreed to an international inspection of the vessel with goods for Yemen,

Electric & Hybrid Propulsion Ordered fir CMAL Ferry

Imtech Marine informs it has been awarded a third contract to supply the electric and hybrid propulsion system for a hybrid ferry operated by Caledonian Maritime Assets Ltd (CMAL) of Scotland.

Subsea Defense

China, Russia Conclude Naval Drill

Russia and China naval forces concluded their first-ever joint military exercise in the Mediterranean Sea this morning, according to an online news briefing from the Chinese Defense Ministry.

EU Backs Migrant Crisis Naval Plan

EU foreign ministers have agreed to launch a military mission against migrant smugglers in the Mediterranean.    The decision allows European governments to

US Navy Lays Keel for PCU Indiana

The U.S. Navy held a keel laying ceremony for the Virginia-class submarine Pre-Commissioning Unit (PCU) Indiana (SSN 789) at Huntington Ingalls Industries, Newport News Shipbuilding, May 16.

 
 
Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Ship Simulators Sonar Winch
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: 0.2375 sec (4 req/sec)