Business

January 7, 2013

General Dynamics awarded $4.6 billion for submarine programs

General Dynamics Electric Boat was recently awarded three U.S. Navy contracts totaling $4.6 billion to design and develop the next-generation strategic deterrent submarine, and to continue construction and purchasing of materials for Virginia-class attack submarines.

Electric Boat is a wholly owned subsidiary of General Dynamics.

Under a five-year, $1.85 billion Ohio Replacement Program contract, Electric Boat will perform research and development work for this new class of ballistic-missile submarine, which is scheduled for a 2021 construction start. Additionally, Electric Boat will continue development of the joint U.S. Navy/Royal Navy Common Missile Compartment for Ohio Replacement submarines and the UK Successor-class ballistic-missile submarine. The potential value of this contract is $1.995 billion.

Electric Boat also received a $2.5 billion award to build two Virginia-class submarines – South Dakota (SSN-790) and Delaware (SSN-791) – the 17th and 18th ships of the class. Construction of Virginia-class submarines is shared between Electric Boat, the prime contractor, and its teammate, Newport News Shipbuilding.

Under the third award, Electric Boat will receive $308 million to purchase long lead-time materials for the as-yet unnamed Virginia-class submarines SSN-792, SSN-793 and SSN-794.

“These awards provide the stability to the submarine industrial base that will allow us to achieve even greater cost reduction through improved efficiencies in support of the Navy’s submarine force-level requirements,” said Electric Boat President Kevin J. Poitras.

“We appreciate the support of the Connecticut and Rhode Island congressional delegations, which are instrumental in educating their colleagues and others about the vital national-security need for a strong submarine force, helping to pave the way for these contracts,” Poitras said.

 




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