General Dynamics Electric Boat (GDEB) has received a $1.85bn contract modification for the procurement of long lead time materials and to initiate preliminary construction activities for the US Navy submarine production.
The efforts related to this modification contract pertains to Virginia-class Block VI submarines.
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According to the US Department of Defense (DoD), nearly $1.68bn (91%) fiscal year 2025 shipbuilding and conversion (Navy) funds will be allocated at the time of the award, which will not expire at the end of the current fiscal year.
Activities under the contract are anticipated to be completed by September 2035.
The Naval Sea Systems Command in Washington, DC, is overseeing the contracting activity.
Work will be distributed across various locations, including Sunnyvale of California, Tucson of Arizona, and Chesapeake of Virginia, according to the DoD.
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By GlobalDataGeneral Dynamics Electric Boat president Mark Rayha said: “This contract modification allows for the acquisition of critical material and components for Virginia-class submarines that require substantial lead time to manufacture and deliver.
“It sends a continued demand signal, supporting supplier investment in the capacity and materials needed to achieve our required production volume.
“Consistent funding and support such as this contract modification is essential for the shipyards to achieve the high-rate production of submarines the Navy needs.”
In August 2024, the company received a contract modification, valued at up to $1.32bn, to procure economic ordering quantity material for the Virginia-class Block VI submarines.
Since fiscal year 1998, the US Navy has been procuring Virginia-class (SSN-774) nuclear-powered attack submarines, with a total of 40 submarines ordered through fiscal year 2024.
A report from the Congressional Research Service indicated that for fiscal year 2025, the Navy had requested funding to purchase another Virginia-class submarine, which would mark the 41st of its series.
In April 2025, GDEB awarded BAE Systems a contract valued at $70m for the manufacture of Virginia Payload Module (VPM) missile tubes.
These tubes are destined for Block VI Virginia-class submarines and will enhance the vessels’ strike capabilities by enabling the launch of up to seven Tomahawk missiles or other future variants.
