December 2, 2019 – U.S. Navy Awards $22.2 Billion Block V Contract to Electric Boat

You are currently viewing December 2, 2019 – U.S. Navy Awards $22.2 Billion Block V Contract to Electric Boat

From left, EB President Kevin Graney, Rep. Joe Courtney, MTC President Ken Delacruz and MDA President Bill Louis at the press conference held in Groton Bldg. 88 on Tuesday, Dec. 3.

Today, the U.S. Navy awarded Electric Boat the Block V contract valued at $22.2 billion for the construction of nine new Virginia-class submarines with advanced capabilities and expanded capacity. The contract also includes the option of a tenth ship to be constructed within the contract time frame, bringing the total potential contract value to approximately $24.1 billion.

In the current environment of great power competition, Block V will provide the Navy with the submarines it requires to retain undersea superiority far into the future. Eight of the nine boats will be equipped with the Virginia Payload Module (VPM), which Electric Boat will build at a recently constructed facility at Quonset Point. The VPM will provide four additional large-diameter payload tubes located on the boat’s center line, increasing the fixed strike capacity of the submarine by more than 230 percent. VPM enables enhanced use of Special Operating Forces, and allows the Navy to bring aboard additional weapons, sensors, and other special payloads.

Electric Boat is fast approaching our 121st anniversary, with a storied legacy of delivering ships to ensure our national security. We are the stewards of that legacy with the opportunity to deliver more submarines than our Navy has required in more than a generation. With this opportunity comes the responsibility to scale our operations while maintaining an unrelenting focus on safety, quality and affordability.

There are many dividends for our efforts—deep pride in our contribution to the Nation’s defense, economic stability, opportunities for future generations of EB employees and a thriving manufacturing sector in our region.

The Block V contract award reflects the confidence our customer has in you and our company. Electric Boat is home to the finest shipbuilders in the world. We have a lot in front of us, but I know that with your dedication and commitment to our product and customer, we will succeed.

Thank you for your hard work. I look forward to working with you to meet the challenges of Virginia, Columbia and beyond.

Kevin Graney
President

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