Navy Awards Electric Boat $12B Contract Modification

The U.S. Navy awarded a Groton-based General Dynamics Electric Boat a $12.4 billion, two-ship contract modification April 30.

The modifications cover the construction of two Virginia-class submarines appropriated through fiscal 2024 funding and have a total value of $17.1 billion if all options are exercised.

The Navy has taken delivery of 24 Virginia-class submarines and has an additional 16 under contract.

In a statement, Navy officials said “the award signals the Navy’s commitment to maintaining its war fighting advantage in the undersea domain.”

“By investing in the nuclear shipbuilding workforce—which is a national strategic asset—we are working with our industry partners to deliver on this most critical future requirement,” said Dr. Brett Seidle, acting Assistant Secretary of the Navy for Research, Development, and Acquisition.

Electric Boat president Mark Rayha said the contract modification “validates the unique and important role submarines and submarine shipbuilders play in our national defense.”

“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,” he said in a statement.

The U.S. Department of Defense awarded Electric Boat a $1 billion contract modification in March for the purchase long lead time materials for Virginia-class construction.