General Dynamics Electric Boat (GDEB), a business unit of General Dynamics, has received a $2.31bn contract modification to supply long lead time materials and commence initial manufacturing work for Virginia-class Block VI submarines.
The Naval Sea Systems Command is responsible for managing and overseeing the contract, according to an announcement by the US Department of War on 11 May.
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Bulk of the work will take place in Sunnyvale, California, accounting for 30% of the effort. Other significant sites include Chesapeake in Virginia, Minneapolis in Minnesota, York in Pennsylvania and Tucson in Arizona, each contributing between 3 and 4%. Additional work will be distributed among various locations across the US.
Works on the project is scheduled for completion by September 2035, as per the contract statement.
Funding allocated for this contract includes $1.97bn in fiscal 2026 shipbuilding and conversion funds, and $150m in fiscal 2025 shipbuilding and conversion funds, which will be committed at the time of the award.
These funds will remain available beyond the current fiscal year.
The contract follows the US Department of the Navy’s $377.5bn budget request for Fiscal Year 2027, which allocates $65.8bn for shipbuilding.
This funding covers the acquisition of 34 new ships, including two Virginia-class submarines and one Columbia-class submarine.
In September 2025, GDEB received a $642m cost-plus-fixed-fee modification to a prior contract (N00024-20-C-2120) for lead yard support, development studies, and design work related to Virginia-class submarines.
Additionally, in April 2025, Naval Sea Systems Command modified GDEB’s existing Virginia-class Block V contract for the construction of two fiscal year 2024 submarines.
Last month, the US Navy commissioned USS Idaho (SSN 799), the Virginia-class nuclear-powered fast-attack submarine at Naval Submarine Base New London in Connecticut.
