General Dynamics, Huntington Ingalls bag huge US submarine orders

28 Dec 2012

1

The US Navy last week awarded submarine contracts worth up to $4.5 billion to General Dynamics Corp and Huntington Ingalls Industries Inc, securing the funds from automatic budget cuts if Congress failed to reach an agreement on other ways to reduce US deficits.

General Dynamics was awarded a five-year contract valued up to $1.99 billion, if all options were exercised, for research and development work on a new submarine for the replacement of current Ohio-class vessels, carrying nuclear weapons.

The Navy awarded a separate contract worth nearly $2.5 billion for the construction of two smaller Virginia-class submarines, splitting the order between General Dynamics' Electric Boat division, based in Groton, Connecticut, and Huntington Ingalls' Newport News shipyard.

Welcoming the contract news, Connecticut representative Joe Courtney said it would help stabilise the local workforce and ensure continued production of submarines, which he described as "a key component of our national security."

He said hundreds of new engineers and designers had already been hired to work on the new submarine programme at a New London, Connecticut, facility.

The contract would leverage the unique skills of Electric Boat's submarine and design workforce in designing a capable and cost effective replacement for its Ohio class submarines, according to Courtney. He noted that Electric Boat had a record of building submarines ahead of schedule and under budget.

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