General Dynamics wins $1 billion contract modification for Virginia-class submarines

General Dynamics Electric Boat, a business unit of U.S. General Dynamics, has been awarded a $1 billion undefinitized contract modification from the U.S. Department of Defense, allowing the company to purchase long lead time materials for Virginia Class Block VI submarines.

As disclosed, Virginia-class submarines are designed from the keel up for the full range of 21st-century mission requirements, including anti-submarine and surface ship warfare and special operations support.

General Dynamics Electric Boat is the prime contractor and lead design yard for this class of submarines and is said to construct them in a teaming arrangement with HII’s Newport News Shipbuilding in Virginia.

Commenting on the contract, Mark Rayha, President of General Dynamics Electric Boat, stated: “This contract modification drives continuation of the crucial demand signal that the submarine industrial base needs to invest in the capacity and materials required to increase production volume. Consistent funding for the supply base is essential to achieve the high-rate production the Navy requires of the entire submarine enterprise.”

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• GDEB nets $967 million contract modification for Virginia-class submarines
• GDEB wins Virginia-class submarine support contract worth $533M

To note, General Dynamics is an aerospace and defense company that offers a portfolio of products and services in business aviation, ship construction and repair, land combat vehicles, weapons systems and munitions, as well as technology products and services. The company’s business unit, General Dynamics Electric Boat, designs, builds, repairs and modernizes nuclear submarines for the U.S. Navy.