General Dynamics Awarded $5 Billion for Design of U.S. Navy’s Next Ballistic-Missile Submarine

The U.S. Navy has awarded General Dynamics Electric Boat a $5.1 billion Integrated Product and Process Development (IPPD) contract to complete the design of the lead Columbia-class submarine, the nation’s next-generation sea-based strategic deterrent. Electric Boat is a wholly owned subsidiary of General Dynamics (NYSE: GD).

“Working closely with the Navy and the submarine industrial base, Electric Boat will continue to lead critical aspects of the Columbia-class development effort, including design, material procurement, construction and operating-cost reduction, to achieve an affordable and effective program,” said Electric Boat President Jeffrey S. Geiger.

The IPPD contract includes funding for component and technology development as well as continued development of the Common Missile Compartment, which will be integrated into both the Navy’s new SSBN and the Royal Navy’s Dreadnought-class strategic missile submarine.

Construction of the lead Columbia-class submarine is scheduled to begin in the fall of 2020. The Navy plans to build a fleet of 12 new SSBNs.

The contract announced today follows a five-year, $1.85 billion award Electric Boat received in December 2012 to perform research and development work for the Navy’s new class of ballistic-missile submarines.