HII, General Dynamics win up to $18.4B submarine contract modification

Huntington Ingalls Industries and General Dynamics have been awarded Navy contract modifications worth up to $18.4 billion to build two Virginia-class submarines, the Department of Defense announced Wednesday.

Reston-based General Dynamics’ Connecticut subsidiary Electric Boat is being awarded $12.4 billion for the construction of the nuclear-powered vessels and investment to improve productivity and workforce support, with options to increase it to a total of $17.1 billion. Newport News-based HII and its Newport News Shipbuilding division is being awarded $1.2 billion, the Navy announcement says.

The two ships will be the 11th and 12th fast-attack submarines under the Navy’s Block V contract.

About a third of the work will be performed in Newport News under this award, as well as Groton, Connecticut; Quonset Point, Rhode Island, and other locations. The two ships, contracted by Naval Sea Systems Command, are expected to be completed by June 2036.

The payments fall under fiscal 2024 and fiscal 2025, with $5.2 billion in 2024 and $4.1 billion in 2025’s budget. The totals also include previously announced material awards totaling $2.1 billion.

“We appreciate the teamwork that resulted in these critical national security assets being put under contract,” Jason Ward, NNS’ vice president of submarine construction, said in a statement. “We understand the advantage Virginia-class submarines bring to the sailors who operate them, and our shipbuilders are working with diligence to deliver them to the fleet.”

So far, NNS and Electric Boat have built and delivered 24 Virginia-class subs, according to HII.

“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.”

U.S. Sen. Tim Kaine, who pushed for additional funding of naval submarines last year, said in a statement: “I’m thrilled the Navy has awarded two additional Virginia-class submarines to Newport News Shipbuilding. This funding is critical to ensuring the Navy has the resources it needs to provide competitive wages for shipbuilders and advance the AUKUS agreement that will help ensure a free and open Indo-Pacific. I look forward to continuing to work with my colleagues in Congress to get our shipbuilding programs back on track.”