Virginia-class nuclear assault submarine. [Photo: GD Electric Boat]
General Dynamics [NYSE:GD] stories that its Groton, Conn., primarily based GD Electric Boat division has been awarded a $1,075,896,000 contract modification from the U.S. Navy to offer long-lead-time materials and superior building for Virginia-class fast-attack nuclear submarines.
Electric Boat is presently below contract for building of submarines in Block V of the category. The superior procurement funds from this contract modification will allow Electric Boat to buy supplies and main parts for hulls 812 and 813.
“This contract modification sends a crucial demand signal to the submarine industrial base, enabling our suppliers to invest in the capacity and materials needed to increase production volume,” mentioned Kevin Graney, president of General Dynamics Electric Boat.
According to a post on USNI News, “awarding the contract comes after a year of negotiation between the Navy and General Dynamics over the liability in the event of an explosion of a Tomahawk Land Attack Missile aboard the submarine.” It provides that “the advanced procurement award is the clearest sign the indemnification issue has been settled,” however notes that “industry leaders have said the lack of a predictable schedule has hurt the supplier base.”
Increasing nuclear submarine manufacturing and the robustness of the provider base are questions which were getting a whole lot of consideration these days in gentle of the AUKUS settlement. This will see Australia will take supply of three U.S. Virginia-class nuclear-powered submarines because it builds its personal nuclear submarine building functionality.
A just released Congressional Research Service report on the Virginia-class program cites the Navy as saying that it “anticipates building additional Virginia class SSNs in the 2030s as replacements for submarines sold to Australia.”
The CRS report features a prolonged dialogue of all the problems this raises for Congress.
The Virginia-class boats are constructed by Electric Boat in a teaming settlement with Huntington Ingalls Industries [NYSE: HII] Newport News Shipbuilding below a multi-year procurement technique.
Today, HII reported that Newport News Shipbuilding has obtained a $305.2 million contract modification from Electric Boat to acquire long-lead-time materials for 2 extra Block V Virginia-class submarines.
