HII expects big agreement for 15 U.S. Navy submarines to be finalised by end of year despite delays

By Defence Industry Europe

HII has launched the Virginia-class submarine Arkansas (SSN 800) into the James River from its Newport News Shipbuilding (NNS) division. The vessel was transferred from a construction facility to a floating dry dock before being moved by tugboats to a submarine pier for final outfitting, testing and crew certification.
Photo: HII.

A multi-year agreement to procure 15 nuclear submarines for the U.S. Navy could be finalised by the end of 2025, according to shipbuilder HII, despite earlier delays linked to rising labour and material costs. “The team’s working very hard to get that done before the end of the year,” HII CEO Chris Kastner said during the company’s latest earnings call.

 

 

The agreement covers 10 Block VI Virginia-class attack submarines and five Columbia-class ballistic missile submarines being built by HII Newport News Shipbuilding and General Dynamics Electric Boat. Kastner added, “The Navy’s working on how that works with the shutdown and potential [continuing resolution] to make sure that we can get the ships awarded.”

The Pentagon has continued funding contract discussions during the government shutdown, with $1.5 billion allocated in FY 2024 for the first Block VI submarine, the future USS Potomac (SSN-814). For FY 2025, Congress has approved $3.6 billion for Potomac and $3.7 billion for advanced procurement of additional submarines scheduled for FY 2026 and 2027.

 

 

The Block VI boats will follow the Block V design and include the Virginia Payload Module, which enables large-scale land-attack missile capabilities, a key requirement as the Navy retires the Ohio-class guided-missile submarines. The Navy aims to field 20 submarines equipped with the VPM to maintain strategic strike capacity.

The Columbia Build II programme would acquire the next five ballistic missile submarines, beginning with the third of the class, the future USS Groton (SSBN-828), at a projected cost of $10.54 billion. The full 12-boat Columbia class is expected to cost approximately $128 billion, according to the Navy’s FY 2026 budget proposal.

This latest round of funding for Potomac and Groton follows a layered financial strategy involving continuing resolutions and allocations to strengthen the submarine industrial base and increase worker salaries. In April, the Navy awarded $18.5 billion to Electric Boat and Newport News for the final two Block V submarines — the future USS Baltimore (SSN-812) and Atlanta (SSN-813).

 

 

“Having completed the negotiations for the significant award of two submarines earlier this year, our teams have pivoted to negotiations of Block VI and the next Columbia award and are working towards having agreements in place late this year,” said Kastner. He also noted progress on other shipbuilding programmes, including the Ford-class carrier John F. Kennedy (CVN-79), which is set to begin sea trials this year, and the Arleigh Burke-class destroyer Ted Stevens (DDG-128), now on track for fleet delivery in 2026.

 

Source: USNI News.

 

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