General Dynamics Electric Boat secures a $987M U.S. Navy contract modification to enhance submarine production, boost supply chain, and support shipyard readiness.
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| With $987M in new funding, General Dynamics Electric Boat expands its submarine manufacturing capacity, advancing U.S. naval defense and industrial resilience. Image: GD |
GROTON, Connecticut, USA — June 21, 2025:
General Dynamics Electric Boat, a subsidiary of General Dynamics, has been awarded a $987 million contract modification by the U.S. Navy to support expanded submarine production and critical infrastructure development. The modification adds funding to a previously awarded contract and focuses on strengthening the submarine industrial base and supply chain through 2031.
The contract includes enhanced support for Component Development, Class Lead Yard Support (CLYS), and Submarine Industrial Base (SIB) supplier growth. These initiatives aim to bolster shipyard capacity and streamline production timelines for next-generation nuclear-powered submarines.
“This contract modification funds important shipyard and supply chain work essential to achieving the necessary growth in output and supports our efforts to accelerate submarine delivery,” said Mark Rayha, president of General Dynamics Electric Boat. “The continued support from the Navy, Congress, and the administration enables us to meet growing demand and deliver critical undersea capabilities.”
Work will be distributed across several key locations: 70% in Groton, Connecticut; 15% in Newport News, Virginia; and 15% in Quonset Point, Rhode Island. The expanded funding will support long-lead material procurement, supplier development, and shipyard infrastructure investments to ensure timely delivery of submarines well into the next decade.
Headquartered in Groton, Connecticut, General Dynamics Electric Boat is a major contractor for the U.S. Navy’s nuclear submarine fleet. The company employs over 24,000 people and is instrumental in the construction, maintenance, and modernization of strategic undersea assets.
General Dynamics, headquartered in Reston, Virginia, is a global aerospace and defense firm employing more than 110,000 people. In 2024, the company reported $47.7 billion in revenue, offering products and services across shipbuilding, aviation, land systems, and advanced IT technologies.