The U.S. Navy has announced a submarine construction package valued at $76.6 billion involving General Dynamics Electric Boat, Groton, Conn., and HII’s Newport News Shipbuilding, Newport News, Va. The combined total covers 14 nuclear-powered submarines, previously announced material awards, and previously awarded investments in shipyard productivity.
Key takeaway
The Navy’s $76.6 billion submarine construction package covers five Columbia-class ballistic missile submarines and nine Virginia-class attack submarines, with work involving General Dynamics Electric Boat and HII’s Newport News Shipbuilding.
The incentive contract modifications include five Build II Columbia-class ballistic missile submarines, SSBN 828 through SSBN 832, and nine Block VI Virginia-class attack submarines, SSN 814 through SSN 822. The award also includes a tenth shipset of material.
In an email to WorkBoat, the Navy said the $76.6 billion total includes $29.5 billion for Columbia-class Build II, $42.1 billion for Virginia-class Block VI, and $5 billion for shipbuilder productivity efforts.
By the numbers
“These important contract modifications provide Electric Boat and our suppliers with the demand certainty we need to continue investing in capacity and hiring the workforce necessary to ensure we deliver these important national security assets on schedule,” said Mark Rayha, president of General Dynamics Electric Boat.
Newport News Shipbuilding will serve as the delivery yard for six of the nine Virginia-class submarines. Under the Columbia-class program, the HII division will construct and deliver six module sections for each submarine.
The Navy said its contract with Electric Boat is valued at approximately $74.89 billion, while its contract with HII's Newport News Shipbuilding is valued at approximately $1.74 billion. The submarines will be co-produced by the two shipyards, with Newport News serving as a major subcontractor to Electric Boat. Virginia-class submarines are generally delivered on an alternating basis between the yards under the terms of the contract, according to the Navy.
The awards bring the number of Columbia-class submarines under contract to seven. The service currently operates 26 Virginia-class submarines, with another 23 slated to be built.
The $76.6 billion represents the total contract value, not the amount being obligated immediately. The detailed contract announcement said the Block VI total includes previously announced long-lead-time and economic-ordering-quantity material awards, while the overall package also incorporates previously awarded investments in shipbuilder productivity.
Approximately $11.88 billion will be obligated at the time of the award. That includes $6.44 billion in fiscal year 2026 shipbuilding and conversion funding, $3.74 billion in fiscal year 2025 shipbuilding and conversion funding, $1.27 billion in fiscal year 2025 maritime industrial base funding, $253.95 million from the fiscal year 2026 National Sea-Based Deterrence Fund, and $171.1 million in fiscal year 2024 shipbuilding and conversion funding.
Work will be performed primarily in Groton, Conn.; Newport News, Va.; and Quonset Point, R.I., with additional work at locations around the country. Work is expected to be completed by July 2038. Naval Sea Systems Command, Washington, D.C., is the contracting activity.
