Pentagon Contract Announcement
(Source: US Department of Defense; issued June 22, 2020)
General Dynamics Electric Boat Corp. has been awarded an $869 million contract to complete the design of Columbia-class ballistic missile submarine, with an option to build the first two boats that would increase the value to $9.47 billion. (GD image)
General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded an $869,043,785 cost-plus-fixed-fee and cost-plus-incentive-fee modification to previously awarded contract N00024-17-C-2117.

This modification includes continued design completion, engineering work, affordability studies and design support efforts for the Columbia Class fleet ballistic missile submarines (SSBNs).

Work will be performed in Groton, Connecticut (41%); Quonset Point, Rhode Island (14%); and Newport News, Virginia (2%), with other efforts performed at various sites throughout the U.S. (43%).

This modification also includes submarine industrial base development and expansion efforts as part of the integrated enterprise plan and multi program material procurement supporting Columbia SSBNs and the nuclear shipbuilding enterprise (Virginia class and Ford class).

The contract modification also provides additional United Kingdom (U.K.) Strategic Weapon Support System kit manufacturing and effort to support expansion of the domestic missile tube industrial base.

Specific effort includes design completion associated with the SSBN 827 technical variance documentation; non-recurring design effort for scope changes between the SSBN 826 and SSBN 827; design for affordability; lead ship component development lead yard support; follow ship lead yard support; and implementation of enhanced cyber security measures.

Further, the action includes U.K. Strategic Weapon Support System kit manufacturing; expansion of the domestic missile tube industrial base; and submarine industrial base supplier development efforts.

The submarine industrial base development and expansion efforts improve sub-tier vendor stability and gains economic efficiencies based on production economies for major components.

The nuclear shipbuilding industrial base continues to ramp up production capability to support the increased demand associated with the Navy’s Force Structure Assessment.

Improved capacity at the sub-tier vendors reduces risk across nuclear shipbuilding programs.

The contract modification includes a fully priced option for the construction of SSBN 826 and SSBN 827, associated design and engineering support. For SSBN 827, the modification covers advance procurement, advance construction and subsequent fiscal 2024 construction of SSBN 827.

This option is required to support October 2020 construction start of the SSBN 826. If the option is exercised, the cumulative value of this contract will increase to $9,473,511,245.

Work is expected to be complete by December 2031. The industrial base development work is for the furtherance of the fiscal 2020 National Defense Authorization Act (Public Law 116-92) and the Consolidated Appropriations Act 2020 (Public Law 116-93), which authorized and appropriated additional funds for submarine industrial base development and expansion to ensure second and third-tier contractors are able to meet increased production requirements.

This is a joint U.S. and U.K. program; U.S. fiscal 2020 national sea-based deterrence funds in the amount of $31,903,052 will be obligated at the time of award and will not expire at the end of the current fiscal year.

The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

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Statement of Electric Boat President Kevin Graney on US Navy Award of Columbia-class Ballistic Missile Submarine Contract
(Source: General Dynamics Electric Boat; issued June 22, 2020)
GROTON, Conn. --- General Dynamics Electric Boat president Kevin Graney issued the following statement about a US Navy contract award announced today.

"The shipbuilders of Electric Boat recognize the responsibility and welcome the opportunity to deliver the Columbia class. Columbia is our nation's top strategic defense priority and, as the prime contractor, we will provide the safest and most capable class of submarines in the defense of our nation. As we move toward full scale construction later this year, Columbia's design is more advanced than that of any previous submarine program. We stand ready to execute on this critical program and have made extensive preparations by hiring and training the next generation of skilled shipbuilders, expanding and modernizing our facilities and strengthening our supply base."

The Navy announced today that General Dynamics Electric Boat has been awarded a contract modification for the design completion, engineering work and design support efforts for the Columbia Class of Ballistic Missile Submarines. An option valued at $9.47 billion supporting the construction of the first two ships of the Columbia class is established as part of this modification. Electric Boat is a wholly owned subsidiary of General Dynamics

Electric Boat is the prime contractor on the design and construction of 12-ship Columbia class, which will replace the aging Ohio class of ballistic missile submarines. Electric Boat will manage numerous vendors and suppliers to do this work. Advanced construction began in 2017 at the company's facility in Quonset Point, Rhode Island. Final assembly and test of the Columbia class will take place starting in 2024 at Electric Boat's shipyard in Groton.

General Dynamics is investing $1.8 billion in capital expenditures to construct and expand its facilities to support the construction of the Columbia class, the world's most advanced strategic missile submarine. The company's three primary locations are in Groton and New London, Conn.; and Quonset Point, R.I. Its current workforce is more than 16,000 employees.

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