Navy makes additions to EB contracts
By Jennifer McDermott | The Day (New London, Conn) | Published: February 6, 2014
Groton — The U.S. Navy has awarded Electric Boat $520 million to buy parts with long lead times for two Virginia-class submarines in fiscal 2015 and in fiscal 2016.
With this modification, the contract is valued at $1.2 billion. It was initially awarded in April 2012.
According to EB’s parent company, General Dynamics, the contract supports the submarine industrial base in Connecticut, California, Pennsylvania, New Jersey, Virginia, Arizona, New York, New Hampshire, Wisconsin, Illinois, Massachusetts and other states.
EB will buy steam and electrical-plant components, main propulsion unit and ship-service turbine generator sets, and miscellaneous hull, mechanical and electrical-systems components to build the submarines, SSN-794, SSN-795, SSN-796 and SSN-797.
Congress recently passed a 2014 omnibus spending bill that supports a steady, two-per-year production rate for new submarines. The five-year construction contract for the next group, or block, of submarines, Block IV, is expected to be awarded in the coming weeks.
Both Connecticut Democratic Sens. Richard Blumenthal and Chris Murphy, and U.S. Rep. Joe Courtney, D-2nd District, praised the contract award for the four submarines in a statement Wednesday.
“More work at EB is great for jobs and economic growth, and it is critical to our national security,” Blumenthal said. “Our nation needs to continue building two subs every year, which I will fight relentlessly to do, because they’ll help keep America strong and free.”
Murphy said, “The men and women at Electric Boat have once again proven their strength and ability to produce the best submarines in the world. This contract award is a huge win not only for the company, but also the tens of thousands of workers who make our defense manufacturing supply chain a rock-solid cornerstone of Connecticut’s economy.”
“This long lead support for two boats each year in 2015 and 2016 is critical to sustaining the submarine production rate,” Courtney added. “Steady two-a-year production of submarines is vital to controlling costs, maintaining efficiency and getting boats into the fleet as quickly as possible, and I look forward to future announcements on a five-year block contract in the weeks ahead.”