Navy, Electric Boat sign submarine contract

[Hoss68]

January 30, 2004

By Lolita C. Baldor
Associated Press

The Navy on Thursday signed a five-year, $8.4 billion contract with Connecticut-based Electric Boat for five Virginia-class nuclear submarines, cementing a congressional plan to provide a more stable, cost-effective shipbuilding program.

The contract was awarded to EB in Groton and Newport News Shipbuidling in Virginia, and other major work will be done in Quonset Point, R.I. Lawmakers and company officials said the long-term commitment will achieve significant cost savings, and could lead to contracts for two ships a year later this decade.

“Our goal remains attaining a build rate of two submarines per year, which will provide the additional production stability needed to achieve even more significant efficiencies and cost savings for the Department of Defense, the Navy and the U.S. taxpayer,” EB President John Casey said.

House and Senate members worked to pass legislation last year enabling the Navy to sign a multiyear contract. Until now, the Navy had been buying one ship at a time.

“The multiyear contract will provide the means for Electric Boat to produce an adequate number of the Navy’s newest and most sophisticated submarines, which are a critical link in the country’s defense, while allowing the Department of Defense to procure more vessels for less money,” said Sen. Joe Lieberman, D-Conn., a member of the Senate Armed Services Committee.

Noting that EB employs 8,500 people in Connecticut and Rhode Island, Sen. Jack Reed, D-R.I., said the contract is “important news for Rhode Island’s economy. Electric Boat’s shipbuilding yard could be the busiest it has been in years.”

And Rep. Patrick Kennedy, D-R.I., added, “Rhode Island’s defense industry is a key component to our overall economic development plan. This funding will provide a boost to jobs and the local economy, while maintaining our state’s excellent track record in the defense construction industry.” Funding for the first submarine in the contract for 2005 will be included in the defense budget that will come out on Monday. That budget is also expected to include millions of dollars for the continued conversion of Trident submarines to enable them to fire conventional weapons.

[kruser79]

It's good to see Electric Boat still with it. Between them and Norfolk, probably the biggest companies supplying us with warships.