U.S. Navy awards $10 billion contract for next-generation Columbia-class submarine

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The US Navy on Monday (June 22) announced a $10.3 billion contract that includes funding plans for the next-generation ballistic submarine Columbia designed and built by General Dynamics Electric Boat. The award is tied to a contract for production of the first two Columbia-class submarines set to begin next year and 2024.

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General Dynamics Electric Boat

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

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. 

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.

“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.” said General Dynamics Electric Boat president Kevin Graney.