New London Day
December 22, 2012
Electric Boat Gets $1.85 Billion Sub Contract
By Jennifer McDermott
GROTON- The Navy has awarded Electric Boat a contract worth nearly $2
billion to continue early design work on a new class of ballistic-missile
The contract, awarded Friday, spans five years (fiscal 2013 through 2017)
and is the first submarine research and development contract to feature
financial incentives directly tied to reducing the program's costs,
according to the Navy.
Most designers and engineers at EB's New London offices are focused on
creating the ballistic-missile sub that will replace the Ohio class. It's
the first new design of a ballistic-missile sub in 40 years.
"The Navy established a structured series of incentives to motivate General
Dynamics-Electric Boat and the government to further innovation to lower
nonrecurring engineering costs, construction costs and operation and support
costs," Capt. William J. Brougham, the Ohio Replacement Program manager,
said in a statement.
Robert Hamilton, EB spokesman, said the Navy "has stated that it expects
this contract will provide it with the best quality product at the lowest
cost, and we agree."
EB, along with its subcontractors and vendors, plans to cut costs using the
Design for Affordability Program the company developed in an effort to
reduce the price of Virginia-class submarines.
"This contract will provide stability to our engineering and design
workforce as well as the supplier base, and ensure that the schedule for the
nation's strategic deterrent submarine is maintained," Hamilton said.
Rear Adm. Dave Johnson, the program executive officer for submarines, said
the $1.85 billion contract moves the Ohio replacement forward in setting the
program's technical foundation, from ship specifications and system
descriptions to design products.
"We will ensure that every dollar is spent wisely while designing a
submarine class that will be in service through 2083," Johnson said in the
The Navy plans to purchase 12 ballistic-missile subs to replace the current
fleet of 14 Ohio-class boats. Construction on the lead ship is scheduled to
begin in 2021.
"This contract will leverage the unique skills of Electric Boat's submarine
and design workforce in designing a capable and cost-effective replacement
for our Ohio-class submarines," said U.S. Rep. Joe Courtney, D-2nd District.
"For southeastern Connecticut, this is welcome news for ensuring stability
in the historic gains our region has made in growing our submarine design
workforce and a vote of confidence for the talented men and women of
In addition, the Navy awarded EB a $2.5 billion construction contract this
week for the next two Virginia-class submarines in 2013, the South Dakota
and the Delaware, Courtney said.