General Dynamics Electric Boat Awarded $5.1 billion by U.S. Navy for Columbia-Class Submarines

Rhea-AI Summary

General Dynamics Electric Boat has received a $5.1 billion modification to its Columbia Integrated Product and Process Development Contract from the U.S. Navy. This contract supports the construction of the Columbia class submarines, set to replace the aging Ohio class submarines. The funds will be allocated for advance procurement and construction of critical components through October 2030. The Columbia submarines will be the largest ever built by the U.S., with the lead ship expected to be delivered in 2027.

Positive

• Award of $5.1 billion contract modification enhances production of Columbia-class submarines.
• Investment supports long-term supply chain stability and increases manufacturing capacity.

Negative

• None.

GROTON, Conn., Dec. 21, 2022 /PRNewswire/ -- General Dynamics Electric Boat announced today the U.S. Navy has awarded a $5.1-billion modification of the previously awarded Columbia Integrated Product and Process Development Contract for the Columbia class of submarines, the nation's next-generation sea-based strategic deterrent.

Electric Boat is the prime contractor on the Columbia program, which will replace the aging Ohio class ballistic missile submarines. The District of Columbia (SSBN 826) and Wisconsin (SSBN 827) are presently under construction.

The contract modification has a value of $5,134,324,189. Work will be performed in Groton, Connecticut; Quonset Point, Rhode Island; and Newport News, Virginia; and is expected to be completed by October 2030. The award funds advance procurement and advance construction of critical components and material to support Build II (the next five ships in the class), efforts to support continuous missile tube production, enhancements to develop the Submarine Industrial Base, and sustained class maintenance and support.

"This award enhances Electric Boat's efforts to maintain the Columbia-class production and delivery schedule. Advance procurement of long lead time materials and component construction is critical to the program, and the strategic investments in the development and expansion of the Submarine Industrial Base will help stabilize and grow the supply chain, which increases manufacturing capacity, reduces risk, and ultimately drives timely delivery of submarines to the Navy," said Kevin Graney, president of General Dynamics Electric Boat.

At 560 feet long with a displacement of nearly 21,000 tons, the submarines of the Columbia class will be the largest ever built by the United States. Ships of the Columbia class will have a fuel core that will power the submarine for its entire service life, eliminating the need for a mid-service refueling. Electric Boat will deliver the lead ship to the Navy in 2027.

General Dynamics Electric Boat designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy. Headquartered in Groton, Connecticut, the company employs more than 19,000 people. More information about General Dynamics Electric Boat is available at www.gdeb.com.

General Dynamics (NYSE:GD) is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; ship construction and repair; land combat vehicles, weapons systems and munitions; and technology products and services. General Dynamics employs more than 100,000 people worldwide and generated $38.5 billion in revenue in 2021. More information about General Dynamics is available at www.gd.com.

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SOURCE General Dynamics

FAQ

What is the value of the contract modification awarded to General Dynamics Electric Boat?

The contract modification has a value of $5.1 billion.

What will the contract funds be used for?

The funds will be used for advance procurement and construction of critical components for the Columbia-class submarines.

When is the lead Columbia-class submarine expected to be delivered?

The lead submarine is expected to be delivered in 2027.

What is the significance of the Columbia-class submarines?

They will replace the aging Ohio class submarines and are the largest ever built by the U.S.

When is the expected completion date for the contract work?

The work is expected to be completed by October 2030.