A General Dynamics (NYSE: GD) subsidiary has secured two U.S. Navy contract modifications valued at approximately $1.2 billion combined to provide materials to support the construction of Block V and VI Virginia-class nuclear-powered attack submarines.
Contract Action for Block V Submarines
The Department of Defense said Tuesday a potential $878 million contract modification awarded to General Dynamics Electric Boat includes the procurement of additional material for the construction of Block V Virginia-class submarines SSN 812 and 813.
Work on the undefinitized contract action will occur in Virginia, California, Massachusetts, New York, South Carolina, New Jersey, Pennsylvania, Florida, New Hampshire, Illinois and other locations through September 2033.
Naval Sea Systems Command will obligate $658.5 million in fiscal 2024 shipbuilding and conversion funds.
In May 2023, Electric Boat booked a $1.1 billion contract modification from the Navy to procure long-lead-time material and major components needed for the SSN 812 and SSN 813 construction projects.
Contract Award for Block VI Submarines
DOD said the potential $349.7 million undefinitized contract modification issued under a previously awarded contract covers long lead time materials for the planned Block VI Virginia-class submarines.
NAVSEA is the contracting activity and is obligating the full contract amount using the service’s shipbuilding and conversion funds for fiscal 2024.
In August, a potential $1.3 billion contract modification was awarded to provide long lead time materials to support the construction of Block VI submarines.
Under the latest contract action, Electric Boat will perform work in California, Minnesota, Pennsylvania, Illinois, Connecticut, Arizona, North Carolina and other sites through September 2035.
The Pentagon noted that the two contract awards reflect the Navy’s commitment to advancing the industrial base’s health and stability.
The latest DOD announcement came days after the General Dynamics business received two awards worth approximately $620.6 million combined to continue supplying lead yard support services and initial spares for the Virginia-class submarines.
Virginia-class submarines are designed to support the Navy’s special operations, anti-submarine and surface ship warfare missions.
