General Dynamics books $2.4B Navy contract to build 10th submarine
Electric Boat, Newport News Shipbuilding win contract option
General Dynamics has been awarded a potential $2.4 billion contract option from the Navy to build a 10th Virginia-class submarine, the U.S. Department of Defense announced last week.
The Fairfax-based company’s Electric Boat subsidiary in Connecticut will work with Huntington Ingalls Industries’ Newport News Shipbuilding on the project, which was added on to a December 2019 contract for $22.2 billion, the largest ever awarded by the Navy. The contract called for the building of nine submarines, with the possibility of a 10th vessel.
About a third of the contract work will take place in Newport News, and work on all 10 submarines is set to be finished by February 2030. According to the Navy, the Naval Sea Systems Command will provide about $2.7 billion in shipbuilding and conversion funds for fiscal years 2018, 2019, 2020 and 2021 at the time of the award.
General Dynamics employs 100,000 people worldwide and reported $39.4 billion in 2019 revenue.