Electric Boat Wins Historic $76.6B Navy Contract

Groton shipyard Electric Boat has been awarded new contracts for submarine construction totaling $76.6 billion — one of the largest shipbuilding contracts in modern history.

The deals from the U.S. Navy include $42.1 billion for the construction of nine Virginia class and $29.5 billion for five Columbia class submarines by the shipyard that’s owned by General Dynamics. There’s also $5 billion to cover shipyard enhancements.

Congress authorized both the Virginia-class Block VI contract in 2023, and the Columbia class Build II contract in 2025. The lengthy delay in the contract award reflects negotiations between the company and the Pentagon over the cost of construction as labor and materials have risen in price.

“These multiyear commitments by Congress and the Navy secure work at submarine shipyards and thousands of supply chain companies well into the late 2030s,” said Congressman Joe Courtney (CT-02), whose district includes Electric Boat.

He urged the Navy to double down on investments in the industrial base, including support for supply chain companies and for hiring and workforce training at EB.

More than 300 Connecticut-based companies work with EB supplying components for its programs.

Meanwhile EB has set its hiring target at 8,000 new workers this year in an effort to meet increased production targets.

“These important contract modifications provide Electric Boat and our suppliers with the demand certainty we need to continue investing in capacity and hiring the workforce necessary to ensure we deliver these important national security assets on schedule,” said Mark Rayha, president of Electric Boat.

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