Navy Awards $76.6B for Virginia, Columbia-Class Submarines

The US Navy has awarded a combined $76.6 billion in contracts to General Dynamics Electric Boat and HII's Newport News Shipbuilding for new Virginia-class and Columbia-class submarines, according to Breaking Defense.

What Happened

The Navy announced a $42.1 billion contract for nine Block VI Virginia-class attack submarines — plus material for an additional vessel — and a separate $29.5 billion contract for five Build II Columbia-class ballistic submarines. Combined with $5 billion in previously awarded funds for shipyard enhancements, the total contract value reaches $76.6 billion, the Navy said.

Vice Adm. Robert Gaucher, the Pentagon's submarine czar, said the awards underscore "the Department's continued commitment to undersea superiority and the recapitalization of our nuclear triad." Newport News Shipbuilding President Kari Wilkinson and General Dynamics Electric Boat President Mark Rayha both said the contracts provide long-term stability for the shipbuilding industrial base. Congress authorized procurement of the Block VI submarines in the fiscal year 2024 National Defense Authorization Act, and lawmakers including Connecticut Rep. Joe Courtney had pushed for the Navy to finalize the award, warning that delays created uncertainty for suppliers dependent on long-lead planning.

On the same day, the Space Force awarded SpaceX two launch task orders worth $1.6 billion under the National Security Space Launch Phase 3 Lane 1 program, Space Systems Command announced, as reported by Breaking Defense and SpaceNews. The orders cover 2027 launches supporting the Space Force's Space Based Sensing and Targeting portfolio, which is designed to track airborne objects from space and provide near-real-time data routing across the Joint Force. An SSC spokesperson said operational security constraints prevent disclosure of satellite quantities or payload specifics.

Separately, the Army awarded Lockheed Martin an undefinitized contract action worth $53.86 billion for PAC-3 Missile Segment Enhancement interceptors, bringing the total value of the seven-year contract to $58.62 billion, according to Breaking Defense. The award follows a nearly $5 billion contract action for the same interceptors in April. Defense Department acquisition undersecretary Michael Duffey said the deal "provides industry with the long-term demand signals it needs to build a resilient supply chain, scale production, and deliver critical capabilities to our Warfighters at the speed of relevance." Lockheed Martin said the funding allows it to triple PAC-3 MSE production capacity by the end of 2030.

Meanwhile, SpaceNews reported that L3Harris Technologies is postponing the initial public offering of its Missile Solutions business, concluding that Wall Street is undervaluing a unit that is expanding rapidly to meet Pentagon priorities around rebuilding US missile production.

Background

The Virginia-class is the Navy's current-generation attack submarine, while the Columbia-class is being built to carry the sea-based leg of the US nuclear triad's ballistic missiles. Electric Boat and Newport News Shipbuilding jointly build both classes. Lockheed Martin has separately secured other large production agreements this year, including a nearly $35 billion contract action for Terminal High Altitude Area Defense interceptors.