23 June 2020

USN awards Electric Boat USD869 million contract modification for Columbia-class submarines

by Michael Fabey

The US Navy (USN) has awarded General Dynamics Electric Boat Corp., Groton, Connecticut, a USD869 million cost-plus-fixed-fee and cost-plus-incentive-fee contract modification on 22 June for continued design completion, engineering work, affordability studies and design support efforts for the Columbia-class fleet of ballistic missile submarines (SSBNs).

The contract modification also includes a fully priced option for the construction of SSBN 826 and SSBN 827, as well as associated design and engineering support.

The US Navy awarded a contract modification for Columbia-class submarines that includes options for construction of the first two boats. (US Navy)

For SSBN 827, the modification covers advance procurement, advance construction and the subsequent Fiscal Year (FY) 2024 construction of SSBN 827. This option is required to support an October 2020 construction start of the SSBN 826. If the option is exercised, the cumulative value of this contract will increase to USD9.5 billion, Work is expected to be completed by December 2031.

“For us to exercise that option, it will require a decision or support from the defence acquisition executive (Under Secretary of Defense for Acquisition and Sustainment Ellen Lord),” James Geurts, the assistant navy secretary for Research, Development, and Acquisition, told reporters during a telephone press conference on 22 June to discuss the contract modification award.

The USN also will need authorisation for the incremental funding plan for the first Columbia-class submarines, as well as the needed Congressional appropriations.

The US Navy (USN) has awarded General Dynamics Electric Boat Corp., Groton, Connecticut, a USD869 mi...

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