General Dynamics is set to get a submarine contract worth over $20 billion
By TONY CAPACCIO | Bloomberg | Published: December 2, 2019
General Dynamics Corp. is expected to receive a U.S. Navy contract this week for more than $20 billion to build the next installment of nuclear-powered Virginia-class submarines, one of the largest shipbuilding contracts in the service's history.
The contract, which may be announced as soon as Monday, is for as many as nine "Block V" Virginia-class submarines, with an option for a 10th. The bulk purchase is estimated to save a minimum of 6.8% over buying the vessels annually, according to an Oct. 30 notice to Congress that's required by law when the Pentagon is in the final stages of negotiations for multiyear contracts.
The notice started a 30-day clock that ended Saturday. A person familiar with the program confirmed the contract timing. Huntington Ingalls Industries Inc. is the main Virginia-class subcontractor.
The Virginia-class submarines are designed to attack both land and sea targets with Tomahawk cruise missiles and other weapons.