Increasing submarine contract backlog bolsters supplier base, USN submarine chief says

Recent contracts for Virginia-class submarines, like New Jersey shown here under construction, are meant to help bolster the supply chain. (Michael Fabey)

While the recent contract modifications award to build more Columbia-class fleet ballistic missile submarines (SSBNs) and Virginia-class attack submarines (SSNs) increased a growing backlog of the vessels, the deals also created a demand signal for suppliers, according to Vice Admiral Robert Gaucher, Pentagon Director Reporting Portfolio Manager Submarines (DRPM SUBS) and US Navy (USN) director of Submarine Programmes as well as Program Acquisition Executive (PAE) Undersea.

US Naval Sea Systems Command (NAVSEA) awarded contract modifications to General Dynamics' Electric Boat (EB) and HII's Newport News Shipbuilding (NNS) on 29 July worth up to total combined USD76.6 billion for construction of five Build II Columbia-class boats – SSBN 828-832 – and nine Block VI Virginia-class submarines SSN 814-822 as well as a 10th shipset of material and investments in shipbuilder productivity efforts.

“We bought 14 new subs,” Vice Adm Gaucher told Janes on 10 August during a briefing about submarine program management. “So, we have to buy 14 subs' worth of parts as soon as possible. The contracts send a demand single to get material orders out on long-term contracts.”

Vice Adm Gaucher acknowledged the increasing submarine backlog is a concern. But, he added, “If you go walking around GD or HII, you see many of the subs being built.”

He observed incentives in the contract accommodate raises for workers, addressing a need to increase pay for shipyard workers and alleviate continuing shipyard workforce concerns.

Historically, shipyard workers have received a higher relative salary compared to wages they have in recent years, Vice Adm Gaucher noted.

Worker retention