The U.S. Navy awarded a contract to General Dynamics Corp., through its subsidiary General Dynamics Electric Boat Corp., for the production of two Virginia-class fast attack submarines, with a cumulative value of $18,445,959,971 if all options are exercised. The base award to Electric Boat totals $12,418,145,463, with Newport News Shipbuilding, a division of Huntington Ingalls Industries, receiving $1,293,694,000 of the contract. Work will be performed in Groton, Connecticut; Newport News, Virginia; Quonset Point, Rhode Island; and other locations, with completion expected by June 2036. The awarded amounts include $2,103,896,000 in previously announced material awards covering long lead time and economic ordering quantity material.
What it means
The contract sustains production work at Electric Boat’s Quonset Point, Rhode Island facility, where submarines get their start before completion at shipyards in Groton and Newport News. Electric Boat broke ground in 2018 on an $800 million, 1-million-square-foot manufacturing expansion at Quonset Point, and the company said it will need to hire thousands of additional workers in Rhode Island in coming years to meet escalating production workloads as older workers retire. Electric Boat currently employs more than 24,000 people across its Rhode Island and Connecticut facilities and offices, and the company said it is currently in the midst of a hiring boom.
Senator Jack Reed, Ranking Member of the Armed Services Committee, said he led efforts to secure $7 billion in the Fiscal Year 2025 National Defense Authorization Act to support the Virginia-class submarine program. A 2022 SENEDIA report put the total direct and indirect economic impact of defense spending in Rhode Island at $7.6 billion, supporting 34,068 direct and indirect jobs. Senator Reed also said he helped SENEDIA secure multiple federal grants from the U.S. Department of Defense to develop a regional workforce development partnership.
Key facts
- Total contract value (all options exercised): $18,445,959,971
- Base award to General Dynamics Electric Boat Corp.: $12,418,145,463
- Total value to Electric Boat if all options exercised: $17,152,265,971
- Award to Newport News Shipbuilding (Huntington Ingalls Industries): $1,293,694,000
- Previously announced material awards included in totals: $2,103,896,000
- Work locations: Groton, Conn.; Newport News, Va.; Quonset Point, R.I.; and other locations
- Expected completion: June 2036
- Electric Boat Quonset Point expansion: $800 million, 1 million square feet, groundbreaking 2018
- Electric Boat current workforce, R.I. and Conn. (according to the company): 24,000+
- FY2025 NDAA funding for Virginia-class program secured by Senator Reed: $7 billion
- Rhode Island defense industry economic impact, 2022 (SENEDIA): $7.6 billion direct and indirect; 34,068 direct and indirect jobs
Source: Office of U.S. Senator Jack Reed news release (reed.senate.gov)