March 22, 2021 – EB Awarded $1.89 Billion Contract Modification for Block V ‘Option Ship,’ SSN-811

You are currently viewing March 22, 2021 – EB Awarded $1.89 Billion Contract Modification for Block V ‘Option Ship,’ SSN-811

On Friday, March 19, the Navy issued a contract modification to the Virginia Block V construction contract, initially awarded in December 2019. Under the modification, Electric Boat will receive funding for the construction of one additional Block V submarine, SSN-811. The modification also fully funds SSN-807, already under contract. The net increase to the contract is $1.89 billion.

“The 17,000 shipbuilders of Electric Boat are pleased to receive the award for the tenth Block V ship, and are ready to meet the generational challenge of building the Virginia and Columbia classes concurrently,” said Electric Boat President Kevin Graney. We are grateful for the continued support of our federal delegation, who strongly advocated for this important funding. Today’s announcement maintains the two-ship per year production cadence, provides continuity and development to our skilled workforce and promotes stability in our national supply base. Electric Boat is proud to continue to deliver the advantage that helps protect our sailors, our families and our freedom.”

Congressman Joe Courtney (CT-02), Chairman of the House Armed Services Subcommittee on Seapower and Projection Forces, issued the following statement on March 19 after the U.S. Navy officially awarded the contracting options for the tenth Virginia-class submarine in the historic Block V contract:

“The Navy’s announcement today of contract execution for the ‘option’ Virginia-class submarine—funded in last year’s NDAA and FY 2021 Omnibus budget—is the exclamation point on Congress’s efforts to protect our nation’s submarine fleet and industrial base,” said Chairman Courtney. “Almost exactly a year ago, the Trump White House sent Congress its 2021 budget that sought to eliminate this ‘option’ sub, which would have disrupted the two-per-year production cadence in the Virginia program that has been in place since 2011. To put it bluntly, that cut would have caused layoffs in New England and Virginia, as well as further decline in the Navy’s aging, shrinking fleet.”

“Starting in the Seapower and Projection Forces Subcommittee of the House Armed Services Committee, Congress basically rewrote the budget tables for the Navy’s shipbuilding plan,” Chairman Courtney continued. “Our rewrite passed in the House both in the NDAA and Appropriations bills with overwhelming bipartisan votes, and was later adopted by the Senate in Conference Committee. It was even belatedly endorsed by the Trump budget director last November. Today’s award announcement will stabilize the program’s workforce, and keep recapitalization of the attack submarine fleet on track. Congratulations to the two shipyards that team up to build these platforms, and a big thank you to the professional staff on Capitol Hill that did the grunt work to help guide Congress and the Navy to today’s extraordinary and important announcement.”

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