Overview
- The Navy formally awarded a combined $76.6 billion contract on Wednesday, July 29, split as $42.1 billion for nine Block VI Virginia‑class attack submarines, $29.5 billion for five Build II Columbia‑class ballistic submarines, and about $5 billion for shipyard and workforce improvements.
- The contracts cover construction work across Electric Boat and HII’s Newport News Shipbuilding and fund long‑lead material, module work and delivery yard roles that will stretch through 2038.
- Navy leaders say the award is intended to lock in continuous production and help recapitalize the sea‑based leg of the nuclear deterrent by providing steady demand for yards and suppliers.
- A recent Government Accountability Office report found production shortfalls and delays, noting shipbuilders were building Virginia‑class boats at roughly one per year versus the Navy’s two‑per‑year target and that Block V deliveries had slipped by about three years, leaving schedule and cost risk despite the award.
- The funding should allow yards and suppliers to expand hiring and invest in facilities, but workforce shortages, retirements and supply‑timing problems remain key challenges that Congress and the Navy will need to monitor to keep schedules on track.