(Source: Northrop Grumman)
12:00 AM, January 5, 2009
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Navy Awards $14 Billion Contract for Eight Virginia-Class Submarines
GROTON, Conn. --- The U.S. Navy today reaffirmed the strategic need for a robust, adaptable submarine force by awarding General Dynamics Electric Boat a contract valued at $14 billion for the construction of eight Virginia-class submarines. Electric Boat is a wholly owned subsidiary of General Dynamics. The multi-year contract allows Electric Boat and its teammate, Northrop Grumman Shipbuilding, to proceed with the construction of one ship per year in 2009 and 2010, and two ships per year from 2011 through 2013. The eighth ship to be procured under this contract is scheduled for delivery in 2019. The Virginia-class submarine is the first U.S. Navy warship designed from the keel up for the full range of mission requirements in the post-Cold War era, including anti-submarine and surface ship warfare; delivering special operation forces; strike; intelligence, surveillance and reconnaissance; irregular warfare; and mine warfare.>> The contract immediately provides $2.4 billion to fund construction of SSN-784, which has been named the "North Dakota;" advanced procurement for SSN-785; funding to purchase materials, parts and components for multiple ships at one time (SSN-785 through SSN-791, as yet unnamed), achieving significant economies of scale; and funding for additional cost-reduction design changes (known as Design For Affordability). "This award is significant for our country, the U.S. Navy, our company and the entire submarine industrial base," said Electric Boat President John P. Casey. "As we attain the production rate of two submarines per year, we will have the stability required to further increase production efficiencies. This will benefit the U.S. taxpayer, while providing the Navy a class of nuclear submarines with the capabilities required to retain our nation's undersea superiority well into the 21st century.
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