Bulk Pricing on SSN 9-Packs
Gen Dyn just picked up a huge $22B contract for nine Virginia-class submarines, eight of which are Block V boats with the Virginia Payload Module (VPM), from fiscal 2019 to fiscal 2023. VPMs bring an additional 28 missiles to each boat, tripling their VLS payload strike capacity from 12 spots to 40, allowing those eight SSNs to tote a theoretical 320 Tomahawks combined in addition to space for another 320 torps and missiles of all sorts in their torpedo room.
The full contract announcement as follows:
General Dynamics Electric Boat Corp. (GDEB), Groton, Connecticut, is awarded a $22,209,893,409 fixed-price-incentive, multi-year modification to previously-awarded contract N00024-17-C-2100 for construction of nine Virginia-class submarines, eight with Virginia Payload Module (VPM), from fiscal 2019 to fiscal 2023. The contract modification includes spare material and an option for one additional submarine with VPM. If the option is exercised, the cumulative value of this contract will increase to $24,097,439,556. The awarded amounts include previously-announced material awards (including long-lead-time material and economic ordering quantity material) totaling $3,197,633,908. This contract modification is for the construction of the fifth block of Virginia-class submarines by GDEB and major subcontractor Huntington Ingalls Industries’ Newport News Shipbuilding division, inclusive of design support and all efforts necessary to test and deliver each submarine. GDEB will continue to subcontract with Huntington Ingalls Industries’ Newport News Shipbuilding division. Work will be performed in Newport News, Virginia (25%); Quonset Point, Rhode Island (21%); Groton, Connecticut (20%); Sunnyvale, California (8%); Norfolk, Virginia (1%); Bethlehem, Pennsylvania (1%); and Annapolis, Maryland (1%), with other efforts performed at various places throughout the U.S. below one percent (22%), and other places outside of U.S. below one percent (1%). Work is expected to be completed by August 2029. If the option is exercised, work is expected to be completed by February 2030. Fiscal 2017 and 2019 shipbuilding and conversion, Navy (SCN) funding in the amount of $3,155,793,018 will be obligated at time of award and will not expire at the end of the current fiscal year – funding: fiscal 2019 SCN (95%); fiscal 2017 SCN (5%). The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity.