IRIA News

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The U.S. Department of Defense has awarded more than $1.06 billion in contracts to General Dynamics Electric Boat, a subsidiary of General Dynamics, for the modification of long lead time materials for Virginia-class Block VI submarines.

The contract, managed by the Naval Sea Systems Command in Washington, D.C., allows Electric Boat to maintain the momentum of production critical to meeting the U.S. Navy’s future operational requirements.

“This contract modification drives continuation of the crucial demand signal that the submarine industrial base needs to invest in the capacity and materials required to increase production volume,” said Mark Rayha, president of General Dynamics Electric Boat. “Consistent funding for the supply base is essential to achieve the high-rate production the Navy requires of the entire submarine enterprise.”

The Virginia-class submarines are engineered for a broad range of 21st-century mission profiles, including anti-submarine and surface ship warfare, intelligence gathering, and special operations. General Dynamics Electric Boat serves as the prime contractor and lead design yard for the program, constructing the submarines in partnership with HII’s Newport News Shipbuilding in Virginia.

The contract’s scope includes work to be performed across various U.S. states, with the largest portion taking place in Sunnyvale, California. Other significant locations include Florence, New Jersey, Bethlehem, Pennsylvania, and additional sites in Illinois, New Hampshire, South Carolina, Connecticut, Minnesota, Arizona, and more. Work is expected to be completed by September 2035.

Virginia-class submarines are purpose-built to meet the complex and evolving mission demands of the 21st century. These advanced nuclear-powered vessels are engineered to excel across a wide spectrum of operations, including anti-submarine warfare, surface ship engagements, intelligence gathering, and support for special operations forces. Their versatility makes them a critical component of the U.S. Navy’s undersea warfare strategy.

From the design stage through construction, every element of the Virginia-class submarines is optimized to ensure stealth, endurance, and combat effectiveness in both open ocean and littoral (near-shore) environments. The submarines are equipped with state-of-the-art sonar, communications, and weapons systems, enabling them to operate undetected in contested waters and strike with precision when necessary.

$951 million award for Polar Security Cutter

In another major defense development, Bollinger Mississippi Shipbuilding secured a $951.6 million fixed-price incentive contract modification to continue work on the Coast Guard’s Polar Security Cutter (PSC). The PSC is designed to maintain U.S. access to both polar regions and support national objectives, including maritime, economic, commercial, and security interests.

Construction will be primarily conducted in Pascagoula, Mississippi, with additional contributions from facilities in Boston, Massachusetts, Peoria, Illinois, Crozet, Virginia, and several other locations. The project is expected to reach completion by May 2030. While no new funds are obligated at the time of this modification, the contract underscores the long-term investment in polar operations amid rising strategic competition in the Arctic.

$45.5 million contract for Precision Landing Systems

Sierra Nevada Corporation, headquartered in Sparks, Nevada, was awarded a $45.5 million firm-fixed-price contract for the production and delivery of 160 AN/APN-246 Beacons. These beacons support the Navy’s precision approach and landing systems, playing a vital role in the modernization of carrier-based aviation operations.

All work will be performed in Sparks, Nevada, with an estimated completion date of August 2027. The project is funded by Fiscal 2025 aircraft procurement (Navy) funds, and all funds will be obligated at the time of award. Notably, this contract was not competed, indicating the specialized nature of Sierra Nevada’s capabilities. The contract was issued through the Naval Air Warfare Center Aircraft Division in Lakehurst, New Jersey.

Strategic implications

These contract awards highlight a growing emphasis on maintaining the U.S. Navy’s technological edge and strategic reach. The focus on submarine production and Arctic readiness comes amid increasing maritime tensions and geopolitical competition, particularly in the Indo-Pacific and Arctic regions.

As the U.S. continues to invest heavily in defense modernization, these contracts not only strengthen military capability but also support thousands of skilled jobs across the nation, reinforcing the industrial base that underpins American military readiness.