US Navy awards contract modifications to buy another two Block V Virginia-class submarines

Block IV Virginia-class attack submarine is shown here under construction at Newport News Shipbuilding. Submarine shipbuilders were awarded contract modifications for Block V boats. (Janes/Michael Fabey)

The US Navy (USN) awarded contract modifications with a potential cumulative contract-change value of USD18.4 billion to acquire an additional two Virginia-class submarines, Naval Sea Systems Command (NAVSEA) confirmed on 30 April.

General Dynamics Electric Boat of Groton, Connecticut, and HII's Newport News Shipbuilding of Newport News, Virginia, were awarded cost-plus-incentive-fee with ceilings and cost-plus-fixed-fee contract modifications for construction of two fiscal year (FY) 2024 Block V Virginia-class attack submarines – SSN 812 and SSN 813 – as well as investments to improve productivity at the shipyards and for nuclear-powered vessel programmes workforce support and investment.

Electric Boat was awarded modifications worth about USD12.4 billion – and if all options are exercised, a total of USD17.2 billion – while Newport News Shipbuilding was awarded modifications worth about USD1.3 billion.

“We recently renegotiated the planned contract to deliver this critical capability, and appropriately share risk between the navy and industry,” USN Secretary John Phelan said in a statement. “We will be looking at all future contracts with a similar lens to ensure the appropriate level of risk-sharing and value.”

The modifications help “promote stability at critical suppliers as the submarine industrial base ramps up to meet a historic increase in demand for submarine production”, Rear Admiral Jonathan Rucker, programme executive officer, Attack Submarines, said in a statement. “We are continuing to work closely with the shipbuilders to improve construction schedules to support the navy's need for a larger, more lethal force.”

For more information on submarine-building delays, please seeUS Navy officials note programme delays and cost issues for construction of submarines and aircraft carriers .