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

Finance

Ross is Fleet Manager, Heidmar

Heidmar announced the promotion of Duncan Ross to Fleet Manager. Duncan joined Heidmar’s London office in 2012 as vessel manager.  Prior to joining Heidmar,

Diana Shipping Nets 2Q Loss

Diana Shipping Inc. today reported a net loss of $14.1 million and net loss attributed to common stockholders of $15.5 million for the second quarter of 2015, compared to net loss of $5.

U.S. Drillers Add Rigs Despite Crude Collapse

U.S. energy firms added 5 oil rigs this week after putting 21 rigs into service last week, the most in over a year, despite a collapse in U.S. crude prices from recent highs in June,

News

Missing Person Rescued Near Brackettville

On July 31, Border Patrol Search Trauma and Rescue (BORSTAR) agents and CBP Office of Air and Marine rescued a man who was reported missing the previous morning.

Ross is Fleet Manager, Heidmar

Heidmar announced the promotion of Duncan Ross to Fleet Manager. Duncan joined Heidmar’s London office in 2012 as vessel manager.  Prior to joining Heidmar,

Fire Aboard USS Mount Whitney

A fire broke out on board USS Mount Whitney (LCC 20) while the ship was in Viktor Lenac Shipyard (Rijeka, Croatia) July 31, 2015. There were no personnel injuries in the fire,

Marine Equipment

Fire Aboard USS Mount Whitney

A fire broke out on board USS Mount Whitney (LCC 20) while the ship was in Viktor Lenac Shipyard (Rijeka, Croatia) July 31, 2015. There were no personnel injuries in the fire,

LR First to Certify Small Caribbean Ships

LR is the first class society to certify small commercial ships operating in the Caribbean After becoming the first classification society to issue Cargo

Optimized Tug-Barge System Designs by Robert Allan

Optimized Tug-Barge System Designs by Robert Allan Ltd. by David R. Connand Robert G. Allan, P.Eng. Some veteran Mississippi pushboats and barges have been

Maritime Safety

Missing Person Rescued Near Brackettville

On July 31, Border Patrol Search Trauma and Rescue (BORSTAR) agents and CBP Office of Air and Marine rescued a man who was reported missing the previous morning.

Fire Aboard USS Mount Whitney

A fire broke out on board USS Mount Whitney (LCC 20) while the ship was in Viktor Lenac Shipyard (Rijeka, Croatia) July 31, 2015. There were no personnel injuries in the fire,

USCG Investigate Tar Balls at Makaha Beach

The Coast Guard is investigating a report made July 29, 2015, by beachgoers of tar balls on the beach in Makaha on Oahu, Hawaii. Coast Guard Sector Honolulu

Vessels

Ross is Fleet Manager, Heidmar

Heidmar announced the promotion of Duncan Ross to Fleet Manager. Duncan joined Heidmar’s London office in 2012 as vessel manager.  Prior to joining Heidmar,

Fire Aboard USS Mount Whitney

A fire broke out on board USS Mount Whitney (LCC 20) while the ship was in Viktor Lenac Shipyard (Rijeka, Croatia) July 31, 2015. There were no personnel injuries in the fire,

LR First to Certify Small Caribbean Ships

LR is the first class society to certify small commercial ships operating in the Caribbean After becoming the first classification society to issue Cargo

Subsea Defense

Thai Navy Lobbies for More Submarines

The Royal Thai Navy claims it urgently needs more submarines to compete with other Asian countries.   The assistant commander made the claim aimed at persuading

Brazilian Police to Probe Nuclear Submarine Program

Brazilian federal police are investigating potential irregularities in a military program that aims to build a nuclear-powered submarine in partnership with France by 2023, newspaper Folha de S.

Japan Seeks Australian Submarine Contract

Japan will send a high-level delegation to Adelaide for talks on building Australia's next-generation fleet of submarines.   A former commander of the Japanese

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators 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: 0.2522 sec (4 req/sec)