General Dynamics Electric Boat Awarded $12 Billion Contract Modification for Virginia-Class Submarines
General Dynamics Electric Boat, a business unit of General Dynamics, has been awarded a total of $12.4 billion in contract modifications for construction of two fiscal year 2024 Virginia-class submarines. Additionally, the award funds investments to improve productivity at the shipyards and workforce support as detailed in the Department of Defense contract award announcement. This contract includes options which, if exercised, would bring the cumulative value to $17.2 billion.
General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy.
“Over the past two years, we successfully worked with the Navy, Congress and the administration to secure funds that enable us to increase wages for the nuclear-powered vessel workforce and allow for significant additional investments in capacity, shipyard processes and systems,” said Mark Rayha, president of General Dynamics Electric Boat. “This contract modification validates the unique and important role submarines and submarine shipbuilders play in our national defense.”
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. General Dynamics Electric Boat is the prime contractor and lead design yard for the Virginia-class submarine series and constructs them in a teaming arrangement with HII’s Newport News Shipbuilding in Virginia.
