Northrop Grumman, General Dynamics awarded $14 billion Navy submarine contract

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The U.S. Navy has awarded Northrop Grumman Shipbuilding in Newport News, a subsidiary of Falls Church-based General Dynamics,  a $14 billion contract to build eight submarines, the largest sub procurement in Navy history.

General Dynamics Electric Boat, based in Groton, Conn., will split the work on the submarines with Northrop Grumman’s Newport News shipyard. Under the contract, the companies will build one ship in 2009 and 2010 and two ships a year from 2011 to 2013. The eighth ship is scheduled to be delivered in 2019.

Northrop Grumman plans to invest $250 million into a new production facility in Newport News and add 2,000 jobs between 2011 and 2015, according to Gov. Timothy M. Kaine.

“The employment opportunities for this contract are far-reaching,” Kaine said in a statement. “Multiple Virginia companies who provide subcontractor services to Northrop Grumman Shipbuilding and General Dynamics Electric Boat will also benefit from a project of this magnitude.”

The companies have previously built five submarines together for the Navy and another five are currently under construction. The companies delivered the most recent submarine, the USS New Hampshire, eight months ahead of schedule and $60 million under targeted costs, according to a statement.

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