The U.S. Department of Defense on Tuesday awarded more than $18 billion in contract modifications to General Dynamics Electric Boat and Huntington Ingalls Industries to build two Virginia-class attack submarines and strengthen the nuclear shipbuilding industrial base.
The awards cover the construction of SSN 812 and SSN 813, two fiscal year 2024 Virginia-class submarines, and include investments in shipyard productivity and workforce support programs. A Navy press release said the Virginia-class submarines are a cornerstone of the Navy’s undersea warfare strategy and represent the latest in stealth, firepower, and flexibility.
General Dynamics Electric Boat, Groton, Conn., received the bulk of the award ($12.4 billion), with the total potential contract value rising to $17.1 billion if all options are exercised. Huntington Ingalls Industries’ Newport News Shipbuilding division in Virginia will receive $1.29 billion. Together, the modifications could reach a cumulative value of $18.4 billion, including previously announced awards for long-lead and economic order quantity materials totaling $2.1 billion.
“This award signals the Navy’s commitment to maintaining its warfighting advantage in the undersea domain,” the Navy said in a press release, emphasizing the longstanding partnership between General Dynamics Electric Boat (GDEB) and Huntington Ingalls (HII-NNS).
To date, the Navy has accepted delivery of 24 Virginia-class submarines, with 16 more now under contract. The new submarines are expected to be completed by June 2036.
Work under the contracts will be performed across several states, including Connecticut and Virginia (32% each), Rhode Island (8%), California (4%), South Carolina (2%), and smaller shares in Alabama, Maryland, Pennsylvania, and other locations, the contract stated.
The Navy obligated $5.26 billion in FY2024 and $4.16 billion in FY2025 shipbuilding and conversion funds at the time of the award. These funds will not expire at the end of the current fiscal year according to the contract.
Navy officials described the agreement as part of a broader push to stabilize the submarine industrial base and prepare it for a historic increase in production demand.
“We recently re-negotiated the planned contract to deliver this critical capability, and appropriately share risk between the Navy and industry,” said Secretary of the Navy John C. Phelan. “We will be looking at all future contracts with a similar lens to ensure the appropriate level of risk sharing and value to the American taxpayer.”
Rear Adm. Jon Rucker, Program Executive Officer for Attack Submarines, said the contract represents a coordinated effort across the nuclear shipbuilding enterprise aimed at boosting supplier stability.
Dr. Brett Seidle, Acting Assistant Secretary of the Navy for Research, Development and Acquisition, underscored the importance of workforce investment: “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.”
The Virginia-class is designed for both deep-ocean and littoral missions and is capable of evolving to meet future warfare needs, the Navy said.
The Naval Sea Systems Command in Washington, D.C. is managing the contracting activity.
