US Navy awards Electric Boat USD2.3 billion contract for Virginia-class work

Later-block Virginia-class attack submarines are meant to replace the firepower of ageing guided-missile submarines like USS Ohio (SSGN 726), shown here operating off the coast of Guam. (Michael Fabey)

The US Navy (USN) on 11 May awarded General Dynamics' Electric Boat a not-to-exceed USD2.4 billion undefinitised contract action modification for long-lead time material and early manufacturing -- pre-construction award -- efforts associated with Virginia-class Block VI submarines, the Pentagon confirmed that day.

Electric Boat builds USN submarines under a teaming agreement with HII's Newport News Shipbuilding.

The contract was awarded on the same day the USN released its ‘US Navy Shipbuilding Plan May 2026', which spotlights the need for continued submarine procurement of Virginia-class attack submarines (SSNs) and Columbia-class strategic-missile submarines (SSBNs) across the future years defense program (FYDP), which ends in fiscal year (FY) 2031.

“The FY [20]27-FY [20]31 plan invests USD124.9 billion across the FYDP for submarine construction,” the shipbuilding plan said.

“For the Columbia-class, the plan invests USD15.2 billion in FY [20]27 and USD62 billion across the FYDP to procure one submarine in FY [20]27 and five across the FYDP, recapitalising the sea-based leg of the nuclear triad as the [Defense] Department's top acquisition priority,” the shipbuilding plan said.

“For the Virginia-class, the plan invests USD14 billion in FY[20]27 and USD62.9 billion across the FYDP to procure two submarines in FY [20]27 and 10 across the FYDP,” the shipbuilding plan said.

The fourth Columbia-class SSBN is being proposed for procurement in FY 2027, continuing serial production of one SSBN per year, which began in FY 2026, the plan notes.