The Navy recently released the funds to General Dynamics [GD] Electric Boat to build the final two Virginia-class (SSN-774) submarines under an existing multi-year contract.
The Navy provided $2.47 billion to Electric Boat for construction of the South Dakota (SSN-790) and Delaware (SSN-791), the last two of the ships under a Block III buy dating back to 2008. The multi-year buy was for eight subs for a total cost of $14 billion.
General Dynamics is the lead in the construction of the ships along with partner Newport News Shipbuilding, which is owned by Huntington Ingalls Industries (HII).
Naval Sea Systems Command (NAVSEA) shortly before the holidays also awarded General Dynamics a $1.8 billion contract for continued design work on the next fleet of ballistic missile submarines.
The five-year contract running through fiscal 2017 contains financial incentives directly tied to program cost reduction, NAVSEA said.
The SSBN(X) program calls for the construction of 12 boomers to replace the current fleet of 14 Ohio-class ballistic subs beginning at the end of the 2020s. The Navy last year delayed building the first vessel by two years to 2021 because of the current budget squeeze.