Reed Says More Work Coming to RI After Navy Inks $76.6 Billion Contract to Build Next-Gen Submarines

WASHINGTON, DC -- Today, U.S. Senator Jack Reed (D-RI), the top Democrat on the Senate Armed Services Committee, hailed the U.S. Department of Defense's decision to award two major submarine contracts, alongside significant shipyard investments, totaling $76.6 billion to ramp up submarine production. Reed says the contract will propel more work and jobs at Quonset well into the future.

Under the terms of the agreement, General Dynamics Electric Boat (GDEB) will be awarded a $29.5 billion, five-boat contract modification for Columbia-class Build II submarines (SSBN 828 through SSBN 832), with Huntington Ingalls Industries - Newport News Shipbuilding (HII-NNS) serving as a major subcontractor. Additionally, GDEB will be awarded a $42.1 billion Multi-Year Procurement contract for nine Virginia-class Block VI submarines (SSN 814 through SSN 822) spanning FY 2025 through 2029.

"The world's most technologically advanced submarines get their start in Rhode Island. This new contract is a win for the Ocean State, the region, and the thousands of men and women who help build and design these high-tech, next-generation submarines. Whether it's protecting economic zones, collecting intelligence, or projecting deterrence, the U.S. submarine fleet provides our Armed Forces with overwhelming operational advantages. I have worked hard to deliver needed funding to support America's industrial readiness, which is critical to our military's readiness and capabilities. This new contract invests in growing the next generation of shipyard talent and means submarine production at Quonset will stay on course and continue full speed ahead for the next decade. This historic deal will lead to further jobs and investment in the state. I will continue advocating for strong contracts, good-paying jobs, and to ensure Rhode Island's talented defense manufacturers contribute to national defense," said Reed, who also serves on the Appropriations Committee.

For years, Senator Reed has championed efforts to strengthen, modernize, and sustain a maritime and defense industrial base-focused talent pipeline. As older experienced shipbuilders retire, the Submarine Industrial Base (SIB) needs to recruit, train, and retain a new generation of workers, capable of building high-quality, technologically advanced submarines. Reed has helped direct investments to help revitalize the Navy's shipbuilding workforce, including working with SENEDIA to create and build a submarine workforce skills development pipeline to train Rhode Islanders and others in New England for these critical, good-paying jobs that contribute significantly to U.S. national security.

Electric Boat is in the midst of a hiring boom and is heavily investing in facilities in Rhode Island. Earlier this year, EB officials said the company planned to hire approximately 3,500 new employees at their Quonset Point location in the coming year. Currently, there are about 8,000 workers at GDEB's Quonset location.

GDEB also employs approximately 16,000 people based in Connecticut, with the majority working at its main Groton facility and surrounding local operations, including New London and Waterford.

ABOUT COLUMBIA-CLASS

Twelve Columbia-class submarines are planned, pending future appropriations by Congress, to replace fourteen Ohio-class submarines that began entering service in the early 1980s. The Columbia-class boats are projected to remain operational at sea through the mid-2080s.

The new fleet of Columbia-class submarines get their start at specialized facilities in Rhode Island. Other parts of the boats are built in other states, including in partnership with Huntington-Ingalls Newport News Shipbuilding in Virginia, and final assembly takes place at EB's submarine shipyard in Groton, Connecticut.

Measuring at about 560 feet in length, each Columbia-class submarine displaces about 21,000 tons and is about two-and-a-half times the size of a Virginia-class submarine.

Construction is well underway on the first two Columbia-class boats: the future USS District of Columbia (SSBN 826) and the future USS Wisconsin (SSBN 827) and has already begun on the third Columbia-class submarine, the future USS Groton (SSBN 828). The newly awarded contract will support construction of five submarines and procurement of long-lead items for USS Groton as well as engineering and design work submarines. To ensure these boats are delivered on time to meet USSTRATCOM requirements, this contract uses an innovative framework that caps government liability, includes meaningful workforce incentives, and directly incentivizes improved shipbuilder performance.

ABOUT VIRGINIA-CLASS

Virginia-class submarines bring cutting-edge warfighting capability to the nation's undersea forces. Virginia-class submarines feature enhanced stealth, sophisticated surveillance capabilities, and special warfare enhancements to meet the Navy's multi-mission requirements.

These submarines range in size. Some are 7,800 tons and 377 feet in length. Newer Block V versions are extended to 460 feet with a displacement of 10,200 tons. They are all powered by a nuclear reactor plant that does not require refueling during the planned life of the ship, reducing lifecycle costs and increasing operational availability.

To date, 26 Virginia-class submarines have been delivered to the fleet and production has already begun on several more.

Co-produced by GDEB and HII-NNS, this contract utilizes economic order quantity to balance technical risk, industrial base capability, and fleet requirements. It features an increased incentive fee structure and improved payment schedules focused heavily on driving on-time deliveries.

Crucially, both the Columbia-class and Virginia-class contracts drive accountability by including provisions to remove ships if contractors are not performing.

To support these massive production requirements, DOD also announced $5 billion in Shipbuilder Productivity Efforts to GDEB and HII-NNS. Initiated with fiscal year 2025 funding provided by Congress, these investments target critical shipyard infrastructure projects to improve shipbuilder capability, capacity, and efficiency. Focusing heavily on modernizing infrastructure and scaling vessel output, this federal funding helps reduce shipbuilding construction delays and lowers taxpayer costs for future submarines.

Combined, these historic actions will significantly increase the U.S. Navy's undersea capabilities.

Today's announcement builds on a previously awarded $15.38 billion contract between Electric Boat and the U.S. Navy that was awarded back in March.

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