General Dynamics Electric Boat awarded USD 12.4 billion contract for Virginia-Class submarines

By Defence Industry Europe

General Dynamics Electric Boat has announced it has received USD 12.4 billion in contract modifications for the construction of two Virginia-class submarines for fiscal year 2024. The award also includes funding for productivity improvements at shipyards and additional support for the workforce, as detailed by the U.S. Department of Defense.

 

The contract includes further options which, if exercised, could raise its total value to USD 17.2 billion. General Dynamics Electric Boat serves as the prime contractor and lead design yard for the Virginia-class programme, working in collaboration with HII’s Newport News Shipbuilding in Virginia.

Virginia-class submarines are developed to meet a wide range of modern mission demands, including anti-submarine warfare, surface ship engagement, and special operations support. These submarines are designed from the keel up to address the evolving strategic needs of 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,” Rayha added.

 

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