The U.S. Navy has awarded General Dynamics’ Electric Boat division a $23.6 million contract modification to continue development of the U.S. Navy’s Ohio Replacement submarine.
Under the terms of the modification, Electric Boat will perform air conditioning unit detail design, prototype unit manufacture and technical manual development.
Initially awarded in December 2012, the five-year $1.85 billion contract calls for Electric Boat to perform research and development work for the Navy’s next-generation ballistic-missile submarine, which is scheduled to begin construction in 2021. The potential value of the overall contract is $2.5 billion.
The U.S. Navy’s Ohio Replacement program will, as its name suggests, replace the current Ohio class which is expected to have its first vessel retire by 2029.
The new sub was initially expected cost over $4 billion per unit compared to Ohio’s $2 billion but media reports claim that more recent projections place the tag at around $6 to 8 billion.
Twelve boats are planned as replacement for the Ohio class. This latest contract award is in line with the 2017 fiscal year budget proposal which promises to fully fund the Ohio-class Replacement SSBN and maintain the Ohio Replacement Program as the Navy’s top priority in strengthening naval power at and from the sea.