We learned in November that General Dynamics Corp. (NYSE: GD) of Reston had secured an agreement to deliver new Virginia-class submarines to the Navy. On Monday, we found out just how much the contract will be worth: a whopping $22.2 billion, the largest shipbuilding contract in Naval history.
The deliveries of nine fast-attack, nuclear-powered submarines are scheduled to run from 2025 to 2029, and the contract includes an option for a 10th ship to be constructed within the contract time frame. An additional sub would bring the total contract value to more than $24 billion.
The Virginia-class attack submarines have been procured since fiscal year 1998 as a fleet to replace retired versions of the Cold War-era Los Angeles-class submarine. The fleet has been built as part of a joint venture between General Dynamics Electric Boat and Huntington Ingalls Industries Inc.’s (NYSE: HII) Newport News Shipbuilding. Eighteen subs have been delivered to the Navy so far.
Eight of the vessels…Read the full story from the Washington Business Journal.