Electric Boat Awarded $1B Contract Modification

The U.S. Department of Defense has awarded General Dynamics Electric Boat a $1 billion contract modification for the construction of Virginia-class submarines.

The Groton-based shipbuilder said the modification will allow it to purchase long lead time materials for the submarines. 

The company said the Virginia-class is designed for a full range of 21st-century mission requirements, including anti-submarine and surface ship warfare and special operations support.

“This contract modification drives continuation of the crucial demand signal that the submarine industrial base needs to invest in the capacity and materials required to increase production volume,” said Electric Boat president Mark Rayha. 

The work, which will be performed at facilities across the country including Connecticut, is expected to be completed by September 2035. 

Prime Contractor

Electric Boat is the prime contractor for the Virginia-class submarines.

The company has already delivered 24 ships with contracts for more than a dozen more.

The contracts are the company’s second largest business line, accounting for 37% of sales.

“Consistent funding for the supply base is essential.”

General Dynamics Electric Boat’s Mark Rayha

Electric Boat employs more than 24,000 people, including more than 15,000 in Connecticut.

The company plans to hire an additional 3,000 employees in 2025.

Connecticut manufacturers make up 10% of Electric Boat’s current supply chain, with suppliers in every corner of the state.

“Consistent funding for the supply base is essential to achieve the high-rate production the Navy requires of the entire submarine enterprise,” Rayha said.