HII is Awarded Contract Modification for Columbia-Class Ballistic Missile Submarines

Rhea-AI Summary

HII has secured a $567.6 million subcontract modification from General Dynamics Electric Boat for the Columbia-class ballistic missile submarine project. This modification, awarded on April 4, enables HII's Newport News Shipbuilding division to procure essential materials and commence advance construction for the next five submarines, known as Build II, following the initial two, District of Columbia and Wisconsin.

The Columbia class is the U.S. Navy's top acquisition priority, designed to replace Ohio-class submarines and serve as a critical element of national deterrence. HII's role includes constructing six module sections per submarine, reaffirming its pivotal contribution to U.S. naval capabilities.

Positive

• Award of a $567.6 million subcontract modification enhances HII's involvement in the high-priority Columbia-class program.
• Advance procurement funds will enable timely acquisition of critical materials and construction preparations for five additional submarines.

Negative

• None.

NEWPORT NEWS, Va., April 11, 2023 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Newport News Shipbuilding division has been awarded a $567.6 million subcontract modification from General Dynamics Electric Boat to provide long-lead-time material and advance construction activities for Columbia-class ballistic missile submarines.

HII is currently under contract for construction of submarine modules for Build I, the first two submarines in the class: District of Columbia (SSBN 826) and Wisconsin (SSBN 827). The advance procurement funds from this subcontract modification, awarded April 4, will allow NNS to purchase major components and commodity material and to begin advance construction on Build II, the next five submarines in the class.

“This contract modification underscores the critical manufacturing work our shipbuilders do for the U.S. Navy, as major contributors to the Columbia-class,” said Brandi Smith, NNS vice president for Columbia-class construction. “When delivered to the fleet, these submarines and their crews will protect peace and freedom around the world, in service of the nation. Our shipbuilders understand the responsibility, commitment and discipline required of them each day, and take great pride in supporting this mission.”

A photo accompanying this release is available at: https://hii.com/news/hii-contract-columbia-class-ballistic-missile-submarine-april-2023/.

The Navy has designated the Columbia class its top acquisition priority. Ultimately, the Columbia class will replace the fleet of Ohio-class ballistic missile submarines, and take over the role of the nation’s sea-based strategic deterrent, providing the most survivable leg of the nation’s strategic triad.

NNS is a major shipbuilding partner in the Columbia-class program, constructing and delivering six module sections per submarine under contract to General Dynamics Electric Boat.

About HII

HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.

As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 43,000 strong. For more information, visit:

• HII on the web: https://www.HII.com/
• HII on Facebook: https://www.facebook.com/TeamHII
• HII on Twitter: https://www.twitter.com/WeAreHII
• HII on Instagram: https://www.instagram.com/WeAreHII

Contact:

Todd Corillo
Todd.T.Corillo@hii-co.com
(757) 688-3220

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ea4ffc25-efb2-47c9-be35-50ee7853eb7f

FAQ

What is the recent contract awarded to HII for the Columbia-class submarines?

HII was awarded a $567.6 million subcontract modification from General Dynamics Electric Boat for long-lead-time materials and advance construction for five additional Columbia-class submarines.

How does the Columbia-class program affect HII's business?

The Columbia-class program represents a significant business opportunity for HII, reinforcing its position as a major military shipbuilder and providing substantial revenue through large contracts.

When was the HII subcontract modification awarded?

The subcontract modification was awarded on April 4, 2023.

What is the significance of the Columbia-class submarines for the U.S. Navy?

The Columbia-class submarines are designated the U.S. Navy's top acquisition priority, replacing Ohio-class submarines and playing a vital role in national strategic deterrence.