Despite teetering on the edge of the fiscal cliff, the Navy has awarded two major contracts to Groton-based Electric Boat. One is a design contract for the Ohio Class Replacement and the other is a construction contract for the next two Virginia Class submarines in 2013, U.S. Rep. Joe Courtney said Friday.
The first contract, for $1.9 billion, supports research and development of the SSBN(x), which will replace the current fleet of Ohio Class Submarines. The five-year contract (FY13-FY18) provides research, development, and design work for the SSBN(x). It is the first major contract that includes development work outside of the Common Missile Compartment and contains unique financial performance incentives designed to reduce program costs.
Under the SSBN(x) program, the Navy is expected to build 12 SSBNs to replace the current fleet of aging Ohio class submarines. The lead ship is currently scheduled to begin construction in 2021, with several years of development, design and advanced construction planned between now and then to support that schedule.
The Navy also awarded $2.5 billion in contracts to Electric Boat for the construction of two Virginia class submarines, the South Dakota and the Delaware, in Fiscal Year 2013. These boats are the last two to be constructed as part of the Block III multiyear procurement contract that was authorized in the FY2008 Defense Authorization Act; the resulting was signed in December 2008.
