EB awarded $1.1 billion contract for two Virginia-class subs
The Day
By: Brian Hallenbeck
May 23, 2023
Groton ― Electric Boat announced late Tuesday afternoon that the Navy has awarded it a $1.076 billion contract to provide long lead materials and advance construction for two Virginia-class, fast-attack submarines.
President Joe Biden requested full funding for the submarines in the 2024 fiscal year budget proposal to Congress earlier this year.
“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,” Kevin Graney, EB’s president, said in a statement.
The contract comes after EB added about 3,700 new workers in 2022, bringing its workforce earlier to 19,500 people. The company is looking to hire an additional 5,750 people this year to meet the demands of its contracts as local real estate developers propose and construct new apartment buildings to meet the increased demand for housing.
U.S. Rep. Joe Courtney, D-2nd District, who authored legislation that made the contract possible, applauded the Navy.
“Another $1 billion in federal funding is on its way to Electric Boat and its suppliers to sustain the two-a-year build rate for new Virginia class submarines,” Courtney said in a statement. “By delivering this funding, the Navy is sending a strong signal to the industrial base to increase capacity while also ensuring we make good on the AUKUS security agreement and sustain our required force structure.”
AUKUS stands for the trilateral agreement among Australia, the United Kingdom and the United States that calls for supplying Australia with Virginia-class submarines, beginning in the 2030s.
“Electric Boat is well positioned to deliver the high-quality submarines our Navy and partners need, and will continue our region’s longstanding role as the nation’s leader in submarine manufacturing,” Courtney said.
U.S. Sen. Richard Blumenthal, D-Conn., a member of the Senate Armed Services Committee, also applauded the $1.07 billion award.
“This step is a boon to both our national defense and our state’s economy. Today’s announcement is great news for our nation and the highly skilled Electric Boat workforce who build the world’s best submarines. These additional submarines are vital to military preparedness — especially in a world more dangerous than ever,” Blumenthal said.
Electric Boat builds Virginia-class submarines in a teaming agreement with Newport News Shipbuilding, a division of HII, of Newport News, Va.
The two submarines planned for fiscal 2024 will be built as options on the Block V multiyear procurement contract completed in December 2019. Block V included procurement authority for up to 13 Virginia-class submarines. The authority allowed the Navy to sustain the two-a-year rate at a minimum, and add additional “option” boats to sustain or increase submarine production.
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