General Dynamics awarded $986.8 million contract for submarine work

Published 18/06/2025, 22:32
© Reuters.

Investing.com -- General Dynamics (NYSE:GD) Electric Boat Corp. has been awarded a $986.8 million contract modification for submarine development work by the Department of Defense.

The cost-plus-fixed-fee modification to a previously awarded contract will fund additional component development, class lead yard support, and Submarine Industrial Base supplier development enhancements for Columbia-class ballistic missile submarines and the nuclear shipbuilding enterprise, which includes Virginia-class submarines and Ford-class aircraft carriers.

The contract combines $16 million in United Kingdom (TADAWUL:4280) funding to support the joint U.S. Columbia-class and U.K. Dreadnought-class common missile compartment program.

This industrial base development work supports the Navy’s plan for serial production of Columbia-class and Virginia-class submarines. The Navy and Office of the Secretary of Defense Cost Assessment and Program Evaluation conducted the fiscal 2025 Submarine Industrial Base Study to determine how to complete the recapitalization of the submarine force.

The projects in this contract directly support the direction of the Office of Management and Budget, the Department of Defense, and the Navy. Funding aligns with the president’s budget for fiscal 2025, including investments for strategic sourcing, supplier development, and infrastructure improvements.

Work will be performed in Groton, Connecticut (70%), Newport News, Virginia (15%), and Quonset Point, Rhode Island (15%), with completion expected by December 2031.

The majority of funding comes from fiscal 2025 national sea-based deterrence fund ($794.1 million or 96%), with additional funding from U.K. funds (2%), and various Navy procurement, conversion, research, and operations accounts making up the remainder.

Naval Sea Systems Command in Washington, D.C. is managing the contract.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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