Report: Navy gives General Dynamics, Huntington Ingalls huge U.S. submarine orders


Pre Commissioning Unit Mississippi (SSN 782), the Navy’s newest Virginia-class submarine, in Groton, Conn., April 9, 2012. The Navy has awarded submarine contracts worth up to $4.5 billion to General Dynamics and Huntington Ingalls, which include the construction of two Virginia-class submarines. (Photo courtesy of the U.S. Navy)


The U.S. Navy last week awarded submarine contracts worth up to $4.5 billion to General Dynamics Corp. and Huntington Ingalls Industries Inc.,  securing the contract funds from automatic budget cuts, Reuters reported.

The Navy awarded General Dynamics a five-year contract valued at up to $1.99 billion if all options are exercised, for research and development work on a new submarine to replace the current Ohio-class vessels, which carry nuclear weapons, according to Reuters.

It also awarded a separate contract worth nearly $2.5 billion for construction of two smaller Virginia-class submarines, work that will be split between General Dynamics’ Electric Boat division, based in Groton, Conn., and Huntington Ingalls’ Newport News shipyard, Reuters reported.

Most of the work will be done at General Dynamics’ Connecticut facility, but about 7 percent of the work will be done by Huntington Ingalls. The Navy eventually plans to buy 12 new submarines to replace the current fleet of aging Ohio-class submarines, with construction slated to begin in 2021, according to Reuters.

The largest military shipbuilder in the country, Huntington Ingalls builds and maintains ships for the U.S. Navy and Coast Guard. The company’s Ingalls Shipbuilding division in Pascagoula and Gulfport employs about 9,900 workers and builds destroyers and amphibious transport ships.

Read the full Reuters report here.

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