US Navy Awards Electric Boat Record $77B Contract

The Pentagon this week awarded General Dynamics Electric Boat one of the largest shipbuilding contracts in U.S. history—a combined $76.6 billion award to build 14 new submarines.

The U.S. Navy assigned Electric Boat $29.5 billion for five Columbia-class submarines and $42.1 billion for nine Virginia-class submarines.

An additional $5 billion was earmarked for shipyard upgrades and infrastructure at the submarine manufacturer’s Groton and Quonset Point, Rhode Island facilities.

The contract reflects U.S. Congress’ authorization of Virginia-class Block VI production in 2023 and Columbia-class Build II production in 2025.

Navy officials said the contract awards “underscore the department’s continued commitment to undersea superiority and the recapitalization of our nuclear triad.”

“By securing the continuous production of both the Columbia and Virginia classes, we ensure we will continue to deliver the world’s most lethal, survivable and resilient combat platform, while providing long-term stability to our shipbuilding industrial base,” said Vice Admiral Robert Gaucher.

Economic Anchor

The Navy now has seven Columbia-class submarines under contract, complementing a force of 26 operational Virginia-class submarines, with 23 more slated to be built.

“These important contract modifications provide Electric Boat and our suppliers with the demand certainty we need to continue investing in capacity and hiring the workforce necessary to ensure we deliver these important national security assets on schedule,” Electric Boat president Mark Rayha said.

For Groton and the surrounding region, the contract locks in Electric Boat’s role as the region’s economic anchor for the next generation.

Electric Boat expects to hire about 8,000 new workers this year alone as it ramps up production.

Electric Boat currently employs more than 27,000 people, and that number is set to grow.

The company expects to hire about 8,000 new workers this year alone as it ramps up production to meet production schedules.

“We’re in a period of unprecedented growth and demand for submarines,” Rayha said earlier this year at the company’s annual legislative briefing.

Broad Impact

The awards are the latest in a string of Navy contracts that have flowed to Electric Boat in recent years.

In May, the Navy modified an existing Virginia-class contract by $2.3 billion, covering long-lead time materials and pre-construction early manufacturing.

The impact of the contract awards and modifications extends well beyond Electric Boat’s payroll.

More than 340 Connecticut-based companies supply components and services for submarine programs.

More than 340 Connecticut-based companies supply components and services for submarine programs, forming a manufacturing network that touches machine shops, metal fabricators, and specialty parts makers across the state.

Electric Boat has spent $1.56 billion across 342 suppliers in Connecticut in the past five years.

The multiyear commitments from Congress and the Navy effectively guarantee work at Electric Boat’s shipyards and supply chain companies well into the late 2030s.

Electric Boat has delivered 14 Virginia-class ships to the Navy, with the latest, the USS Idaho, commissioned in April at Naval Submarine Base New London.