Navy's Largest-Ever Shipbuilding Contract Goes To EB

GROTON, CT — Monday, the U.S. Navy awarded its largest-ever shipbuilding contract to General Dynamics Electric Boat for construction of nine Virginia-class attack submarines.

The contract for the Block V Virginias, worth $22.2 billion, could grow by another $2 billion if the Navy exercises an option for a 10th boat. The contract is for two fewer boats than the 11 proposed by the fleet in this year’s budget submission.

Electric Boat President Kevin Graney said the contract means stability for the shipyard.

“This contract allows for our shipbuilding team, out suppliers and our employees to plan ahead so that we can continue to deliver submarines of unmatched quality, stealth and lethality,” Graney said.

Stability is important especially for Gen Z and Millennials recently hired. Like Keenen Armstead. The 21-year-old was hired two years ago this past October.

A pipe fitter and member of the United Association of Plumbers and Plumbers Local 777, Armstead is a 2016 graduate of Stonington High School. He lives in Mystic.

"This is good for EB and good for workers," he said. "Knowing you have job security is everything."

Navy officials said that six of the boats would be constructed at Electric Boat’s partner yard, Huntington Ingalls Newport News, and three would be built at Electric Boat. The 10th boat would go to Electric Boat if the Navy exercised the option.

Eight of the boats which will have 84-foot section that boosts the boat’s strike missile capacity.

The contract also includes options for additional submarines in both 2022 and 2023, as required in a provision of the FY2019 National Defense Authorization Act that was authored by Congressman Joe Courtney.

“The long-awaited contract awarded today – the largest ever awarded by the Navy – provides stability and certainty to our submarine shipbuilders, greater deterrent capability to our combatant commanders, and increased workload for the industrial base,” Courtney said.

Courtney was at EB Tuesday.

Photo: Office of Congressman Joe Courtney

“The submarines that will be built under this contract are not your normal Virginia class – each new Block V VPM submarine is 90 feet longer with a payload module that carries an additional price tag of $500 million. As a result, each of the advanced submarines requires more construction work than the previously-built versions," Courtney said.

"That’s good news that continues to support historic surge in workload and workforce at the Groton shipyard and throughout the Connecticut and national supply chain that supports it.”

And Connecticut Gov. Ned Lamont applauded contract.

“Connecticut workers have earned a reputation of being the best trained in the nation, and there is no doubt that the U.S. Navy recognizes the strength of the workers at Electric Boat and its local suppliers throughout our state. With large contractors like Electric Boat leading the way, Connecticut’s defense industry is hard at work developing new technologies and products, building a skilled labor force, and bolstering a reputation for excellence in the industry that will ensure our defense sector remains strong," he said in a statement.

“This is big news for workers throughout southeastern Connecticut. For years to come, the most advanced and most capable submarines in the world will continue to be built in Connecticut.”

The Navy said the move to put most of the work in Newport News was done to balance the increased workload at Electric Boat with the start of the Columbia class, the next generation of ballistic missile submarines slated to begin construction this year.

“A lot of hard work across the whole team to structure the contract in such a was as to balance risk between the government and the shipbuilder,” James Geurts, the Navy’s top acquisition official said in a press release.

“If the shipbuilder delivers on target, the multi-year savings will be 16.5 percent, or $4.4 billion in savings. So, it’s a pretty important day for us.”

In September, ceremonial ground was broken at EB's South Yard Assembly Building in the Groton shipyard, a new 200,000 square-foot facility dedicated to construction of the Columbia class submarine.