Navy Awards Block V Virginia-Class Submarine Contract
(Source: US Naval Sea Systems Command; issued Dec. 02, 2019)
The $22.2 billion contract awarded Monday for nine Virginia-class Block V submarines, with a tenth on option, is one of the largest-ever awarded by the US Navy, and covers production until 2029, when the final boat is due to be delivered. (HII photo)
WASHINGTON --- The Naval Sea Systems Command awarded a nine-ship -- eight with Virginia Payload Module (VPM) -- Block V contract to General Dynamics Electric Boat (GDEB) Dec. 2.

The contract includes an option for one additional submarine with VPM. The Block V contract is a $22.2-billion fixed-price incentive fee, multi-year procurement contract for fiscal years 2019 through 2023.

"Our submarine force is fundamental to the power and reach of our integrated naval force," said acting Secretary of the Navy Thomas B. Modly. "Today's announcement affirms our commitment to the future strength of our nation, undersea and around the world."

"I am very proud of the government, shipbuilder and supplier team as the Navy awards the Virginia Block V multi-year contract today', said James F. Geurts, assistant secretary of the Navy for research, development and acquisition. "This team developed a Block V multi-year contract which provides significant increases in lethality and performance for the fleet to support the National Defense Strategy while also ensuring we are maximizing the use of taxpayer dollars.

“The multi-year contract also provides the stability needed in this critical industrial base to ensure we can continue to maintain our competitive advantage in undersea warfare while also providing a solid foundation for the Columbia program to build upon."

"Block V Virginias and Virginia Payload Module are a generational leap in submarine capability for the Navy," said Program Executive Officer for Submarines Rear Adm. David Goggins. "These design changes will enable the fleet to maintain our nation's undersea dominance."

The Block V contract continues the Virginia class's teaming arrangement between prime contractor GDEB in Groton, Connecticut, and the major subcontractor, Huntington Ingalls Industries' Newport News Shipbuilding division (HII-NNS) in Newport News, Virginia.

Block V submarines will incorporate acoustic superiority design changes to maintain undersea dominance on all Block V hulls and the VPM, with four large payload tubes in a new hull section on eight submarines, increasing Tomahawk strike capacity from 12 to 40 missiles per boat to maintain undersea strike capacity with the expected retirement of the Navy's four guided-missile submarines and providing future payload flexibility.

"The Block V contract balances the right mix of undersea quantity and capability with a profile that continues to stabilize the industrial base. This balance and stability will enable the success of submarine acquisitions across the enterprise," said Virginia Class Program Manager Capt. Christopher Hanson. "Our warfighters, the Navy, and the nation will benefit greatly from the new capabilities that the Block V submarines will bring to the fleet."

The Block V contract is the culmination of substantial collaboration between the Navy and shipbuilders.

"The Navy and shipbuilders worked together to produce a contract that is both fair and reasonable to the Navy, taxpayers and industry," said Goggins.

To date, the Navy has taken delivery of 18 Virginia-class submarines, and all 10 Block IV submarines are under construction. Contract delivery of the first Block V submarine is FY 2025.

Virginia-class submarines are built to dominate the world's littoral and deep waters while conducting anti-submarine warfare; anti-surface-ship warfare; strike warfare; special operations forces support; intelligence, surveillance and reconnaissance; irregular warfare and mine warfare missions. Their inherent stealth, endurance, mobility and firepower directly enable them to support five of the six maritime strategy core capabilities: sea control, power projection, forward presence, maritime security and deterrence.

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General Dynamics Electric Boat Awarded $22.2 Billion by U.S. Navy for Fifth Block of Virginia-Class Submarines
(Source: General Dynamics; issued Dec 02, 2019)
GROTON, Conn. --- The U.S. Navy today awarded General Dynamics Electric Boat a contract valued at $22.2 billion for the construction of 9 new Virginia-class submarines. The contract also includes the option of a tenth ship to be constructed within the contract time frame, bringing the total potential contract value to approximately $24.1 billion. Electric Boat is a wholly owned subsidiary of General Dynamics

The multi-year ‘Block V’ contract enables Electric Boat as prime contractor, along with its teammate, Newport News Shipbuilding, to deliver Virginia-class fast-attack submarines with advanced capabilities and expanded capacity to the Navy. Construction on Block V ships will begin this year, with deliveries scheduled from 2025 through 2029.

“This contract allows for our shipbuilding team, our suppliers and our employees to plan ahead so that we can continue to deliver submarines of unmatched quality, stealth and lethality,” said Kevin M. Graney, President, General Dynamics Electric Boat. “Increasing the cadence of our production from one per year to two, coupled with the start of full production of the Columbia-class ballistic missile submarine, represents a generational increase in submarine production for our nation.”

“We are prepared to meet the challenge,” said Graney.

Ships of the Virginia class exemplify the commitment by the Navy and industry to reduce costs through a multi-year procurement strategy, continuous improvements in construction practices and cost-reduction design changes.

Over the life of the Virginia program, shipbuilders have driven delivery timelines from 88 months in Block I to a current average rate of 68 months, while doubling the build rate of submarines to two ships per year and consistently increasing ship capability.

Eight of the ships produced for Block V will include the Virginia Payload Module (VPM), which Electric Boat will build at a recently-constructed facility at Quonset Point, Rhode Island. The VPM will comprise four additional large-diameter payload tubes located amidships, increasing the fixed strike capacity of the ship by more than 230 percent. VPM, which was designed by Electric Boat, will enable enhanced use of Special Operating Forces and allow the Navy to bring aboard additional weapons, sensors and other special payloads.

Electric Boat and Newport News Shipbuilding already have delivered 18 Virginia-class submarines to the Navy and all 10 Block IV submarines are currently under construction. Virginia-class submarines displace 7,800 tons, with a hull length of 377 feet and a diameter of 34 feet. With VPM, the submarines will displace 10,200 tons and have a length of 460 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.


General Dynamics Electric Boat, a business unit of General Dynamics, has a workforce of more than 17,000 employees at its three primary locations in Groton and New London, Connecticut, and Quonset Point, Rhode Island.

General Dynamics is a global aerospace and defense company that offers a broad portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; IT services; C4ISR solutions; and shipbuilding and ship repair. Headquartered in Reston, Virginia, General Dynamics employs more than 100,000 people worldwide and generated $36.2 billion in revenue in 2018.

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Pentagon Contract Announcement
(Source: US Department of Defense; issued Dec. 02, 2019)
General Dynamics Electric Boat Corp. (GDEB), Groton, Connecticut, is awarded a $22,209,893,409 fixed-price-incentive, multi-year modification to previously-awarded contract N00024-17-C-2100 for construction of nine Virginia-class submarines, eight with Virginia Payload Module (VPM), from fiscal 2019 to fiscal 2023.

The contract modification includes spare material and an option for one additional submarine with VPM. If the option is exercised, the cumulative value of this contract will increase to $24,097,439,556.

The awarded amounts include previously-announced material awards (including long-lead-time material and economic ordering quantity material) totaling $3,197,633,908.

This contract modification is for the construction of the fifth block of Virginia-class submarines by GDEB and major subcontractor Huntington Ingalls Industries' Newport News Shipbuilding division, inclusive of design support and all efforts necessary to test and deliver each submarine.

GDEB will continue to subcontract with Huntington Ingalls Industries' Newport News Shipbuilding division.

Work will be performed in Newport News, Virginia (25%); Quonset Point, Rhode Island (21%); Groton, Connecticut (20%); Sunnyvale, California (8%); Norfolk, Virginia (1%); Bethlehem, Pennsylvania (1%); and Annapolis, Maryland (1%), with other efforts performed at various places throughout the U.S. below one percent (22%), and other places outside of U.S. below one percent (1%).

Work is expected to be completed by August 2029. If the option is exercised, work is expected to be completed by February 2030.

Fiscal 2017 and 2019 shipbuilding and conversion, Navy (SCN) funding in the amount of $3,155,793,018 will be obligated at time of award and will not expire at the end of the current fiscal year - funding: fiscal 2019 SCN (95%); fiscal 2017 SCN (5%).

The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.

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