U.S. Navy Awards General Dynamics Electric Boat $1.85 Billion Contract
In late June 2025, the U.S. Navy announced a $1.85 billion contract modification to General Dynamics Electric Boat to kick off production of the next-generation Virginia-class attack submarines. This undefinitized contract action, announced June 27, covers long-lead-material procurement and preliminary construction for the Virginia-class Block VI program. Work will span many states and extend through September 2035. Naval Sea Systems Command obligated $1.68 billion in FY2025 shipbuilding funds. This award ensures General Dynamics Electric Boat continues its longstanding role as prime builder of the Navy’s nuclear-powered fast-attack submarines, supporting the fleet build-up.
The contract specifically targets the Virginia-class. These nuclear submarines are equipped with advanced sensor suites and weapons for anti-submarine warfare and special operations. Block VI submarines will introduce new capabilities including hypersonic weapon launchers, enhanced stealth features, and improved undersea networking. GDEB, teaming with Huntington Ingalls’ Newport News Shipbuilding, has delivered 24 Virginias so far and has ten more under construction. The Navy plans about 66 Virginia-class subs over the program’s life, making a steady production pipeline critical.
Under the new contract, the company will purchase critical components and start initial assembly of roughly 9–10 Block VI submarines. Most work is performed in Sunnyvale, California (about 37% of effort) and Groton, Connecticut, leveraging the existing Virginia-class industrial base. The project is scheduled to be completed by September 2035 and match the Navy’s delivery timetable for the next Virginia-class submarines. The award is part of the FY2025 Submarine Industrial Base (SIB25) initiative to expand production capacity and supplier capability. Officials note the nuclear shipbuilding workforce is “a national strategic asset”. This contract not only buys boats but also invests in U.S. manufacturing resilience and skills.
GDEB won a $3.3 billion base contract in 2023 for multiple Virginia-class subs and support. Since then, the Navy has allotted roughly $5 billion more toward Block VI in stages (for example $2.2B in Oct 2023, $1.3B in Aug 2024, and $1.06B in April 2025). GDEB employs about 24,000 people and anchors a network of suppliers across the U.S. This latest contract thus underpins defense priorities, preserving undersea deterrence and warfighting edge, while reinforcing the domestic submarine industrial base.