General Dynamics Secures $12.4 Billion Contract for Virginia-Class Submarines

General Dynamics has announced a substantial contract valued at $12.4 billion to support the production of two additional Virginia-class attack submarines for the US Navy....

General Dynamics Secures $12.4 Billion Contract for Virginia-Class Submarines

General Dynamics has announced a substantial contract valued at $12.4 billion to support the production of two additional Virginia-class attack submarines for the US Navy. This significant deal, originally scheduled for award in 2024, will focus on the construction of SSN-812 (USS Baltimore) and SSN-813 (USS Atlanta), both of which will be built to the Block V standard.

The funding secured through this contract will be pivotal in enhancing productivity at General Dynamics’ shipyards, including plans for workforce expansion. In a related development, Huntington Ingalls Industries has also been awarded $1.3 billion as the primary subcontractor for the program, underscoring the collaborative effort in this massive project.

Mark Rayha, president of General Dynamics Electric Boat, emphasized the importance of this contract modification, highlighting the successful efforts over the past two years to work closely with the Navy, Congress, and the administration. He noted that these collaborative efforts were aimed at securing funds to increase wages for the workforce involved in constructing nuclear-powered vessels. Rayha stated, “This contract modification validates the unique and important role submarines and submarine shipbuilders play in our national defense.”

The majority of the work associated with this contract will take place in Connecticut and Virginia, with the anticipated completion date set for June 2036.

The Virginia-class submarine program is a vital component of the US Navy’s strategy for undersea warfare, designed to replace the aging Los Angeles-class fleet. These advanced submarines come equipped with cutting-edge sonar systems, enhanced stealth capabilities, and a modular design that allows them to carry out a wide array of missions, including surveillance, intelligence gathering, special operations, and anti-submarine warfare.

The Block V upgrades to the Virginia-class include the Virginia Payload Module, which significantly enhances the submarine’s missile capacity, extending its operational strike potential. This program has been in place since 1998, with the Navy having procured a total of 40 Virginia-class submarines so far. Currently, 24 of these submarines are actively serving, while an additional 16 are either under construction or awaiting delivery.

General Dynamics reports that its workforce dedicated to the Virginia-class program in Connecticut has now surpassed 24,000 employees, reflecting the growing demand and focus on modernizing the US Navy’s undersea capabilities.

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