US Navy awards $15b contract modification for submarine construction

The US Navy has awarded General Dynamics Electric Boat a $15 billion contract modification to accelerate the serial construction of the Columbia-class and Virginia-class submarine programs. Extending through 2035, the agreement covers design work, lead-yard support, sustainment, and supplier-base expansion.

Funding for the modifications is primarily sourced from the 2026 National Sea-Based Deterrence Fund, with additional contributions from the Maritime Industrial Base.

Construction is currently underway on the USS District of Columbia and the USS Wisconsin, while work has also commenced on the USS Groton. The navy reported that the newly awarded contract will support advanced construction and the procurement of long-lead items for the USS Groton.