Electric Boat Awarded $987M Navy Contract Modification

General Dynamics Electric Boat was awarded a $987 million contract modification from the U.S. Navy, the Groton-based manufacturer announced June 18.

The award supports an existing contact and is designed to help the submarine builder with additional component development, yard infrastructure, and supply chain enhancements.

Electric Boat is in the midst of ramping up production to meet Navy demand for Columbia-class and Virginia-class submarines.

Company president Mark Rayha said the award will facilitate the acquisition of long lead time material and support construction costs.

“This contract modification funds important shipyard and supply chain work essential to achieving the necessary growth in output and supports our efforts to accelerate submarine delivery,” Rayha said.

“The ongoing support for the shipyards and our supply base from the Navy, Congress, and the administration is appreciated and necessary for us to meet the Navy’s current and future demand for submarines.”

Supply Chain

The Submarine Industrial Base supply chain efforts facilitate the Navy’s submarine production plans for the next decade.

The goal is to build one Columbia-class and two Virginia-class boats each year over that period.

The goal is to build one Columbia-class and two Virginia-class boats each year over the next decade.

That will require a significant increase in workload for the company’s 16,000-plus U.S. suppliers, including over 330 in Connecticut.

SIB funding drives capacity building, training, and workforce development for supply chain companies.

Electric Boat was awarded a $12.4 billion, two-ship contract modification in April.