Second Sub in 2011 Ordered By U.S. Navy

By CHRISTOPHER P. CAVAS Published: 29 Apr 2011 16:41

Using money from the newly-passed 2011 defense budget, the U.S. Navy on April 28 was finally able to do something it hasn't done for 20 years - order the construction of more than one submarine in a single year.

The Virginia-class attack submarine Hawaii enters Apra Harbor, Guam, for a scheduled port visit. The U.S. Navy has ordered two submarines to be built this year, a first in 20 years. (MC2 Corwin Colbert / Navy)

About $1.2 billion was awarded to General Dynamics Electric Boat to build the yet-to-be-named SSN 787, the 14th unit of the SSN 774 Virginia class of nuclear-powered attack submarines. The money comes after earlier contracts for long-lead items for the boat, such as the nuclear reactor.

Ordering the second sub was the Navy's top priority among items threatened by the continuing resolutions that kept the government running at 2010 levels for the first six months of fiscal 2011. A defense budget that included the second submarine was finally approved by Congress in early April and signed into law April 15.

The Navy and its submarine shipbuilding team of Electric Boat and Huntington Ingalls Industries have been working for years to bring down costs on the submarines to be able to afford two subs in a single year. The two-per-year threshold of $2 billion per sub - figured in 2005 dollars - was reached beginning with the 2012 submarine, but Congress last year added a second sub to the 2011 budget.

The $2 billion figure is somewhat mythical; factored for inflation, that amount in 2005 dollars equals about $2.6 billion in current monies.

Nevertheless, prime contractor Electric Boat claims the per-unit cost of a new Virginia-class submarine has come down about 20 percent since the first boat was ordered in 1998.

"Reducing the cost of Virginia Class ships to the point where the Navy can afford to acquire two ships per year has demanded an intense process of continuous improvement," John Holmander, Electric Boat's Virginia program manager, said in a press release. "Our task now is to ensure that we demonstrate additional improvement on each ship so taxpayers get the best possible return on the nation's investment in submarines."

Construction of Virginia-class submarines is shared equally between Electric Boat and Huntington Ingalls. EB builds its hull sections at Quonset Point, R.I., and assembles the submarines at Groton, Conn. HI's submarines are built and assembled at Newport News, Va. The shipbuilders alternate on completing each boat.

Newport News will complete the SSN 787, with delivery expected around 2016.

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