Electric Boat gets $17.6 billion Virginia Class award

APRIL 28, 2014 — Electric Boat Corp., Groton, Conn., is being awarded a $17,645,580,644 fixed-price incentive multiyear Navy contract for construction of 10 Virginia-class submarines from fiscal 2014 to 2018.

This contract includes options for on-board repair parts in support of each submarine which, if exercised, would bring the cumulative value of this contract to $17,827,808,738.

Electric Boat Corp., will continue to subcontract with Huntington Ingalls Industries-Newport News. Work will be performed in Newport News, Va. (24 percent); Groton, Conn. (18 percent); Quonset Point, R.I. (16 percent); Sunnyvale, Calif. (8 percent); Cheswick, Pa. (1.7 percent); Annapolis, Md. (1.2 percent), and with other efforts performed at various sites throughout the United States (31.1 percent).

Work is expected to be complete by August 2024. No contract funds will expire at the end of the current fiscal year.

This contract was procured sole source from Electric Boat Corp., pursuant to 10 United States Code 2304 (c)(1) and Federal Acquisition Regulation 6.302-1 (only one responsible source and no other supplies or services will satisfy agency requirements). The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-12-C-2115).

The multi-year Block IV contract enables Electric Boat and its industry teammate, Newport News Shipbuilding, to proceed with the construction of two ships per year over a five-year period. Construction of the first Block IV submarine, SSN-792, will begin May 1. The 10th ship to be procured under this contract is scheduled for delivery in 2023.

"This award has great significance for the U.S. Navy, our company and the entire submarine industrial base," said Jeffrey S. Geiger, president of Electric Boat. "By continuing to produce two ships per year, the Navy and industry team retains the stability required to achieve increased efficiencies, providing the fleet with the submarines it needs to sustain the nation's undersea dominance."

"This is the largest number of boats ordered to date in a single contract block, which is great news – particularly in light of today's challenging economic and political environments," said Newport News Shipbuilding President Matt Mulherin. "The Virginia-class program has already proven itself to be one of the best, if not the best, performing shipbuilding programs in the country and we look forward to continuing our important role in building these submarines."

Electric Boat and Newport News Shipbuilding already have delivered 10 Virginia-class submarines to the Navy: USS Virginia (SSN-774), USS Texas (SSN-775), USS Hawaii (SSN-776), USS North Carolina (SSN-777), USS New Hampshire (SSN-778), USS New Mexico (SSN-779), USS Missouri (SSN-780), USS California (SSN-781), USS Mississippi (SSN-782) and USS Minnesota (SSN-783). Eight additional submarines are under construction.

Virginia-class submarines displace 7,800 tons, with a hull length of 377 feet and a diameter of 34 feet. They are capable of speeds in excess of 25 knots and can dive to a depth greater than 800 feet, while carrying Mark 48 advanced capability torpedoes, Tomahawk land-attack missiles and unmanned underwater vehicles.