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Defence industries

Navy Awards $125 Million Contract to General Dynamics Electric Boat for Submarine Maintenance

Strategic Insights

— 2 min read

Congressman Joe Courtney praised the US Navy's decision to award a $125 million contract to General Dynamics Electric Boat in Groton, Connecticut, for the maintenance availability of the USS Hartford. This contract is a "strong vote of confidence in Groton's skilled workforce capability and the work they do to build and maintain our submarine fleet," Courtney said. The contract is expected to support work at the Groton Shipyard through February 2022 and is a step forward in addressing the Navy's shortfalls in submarine maintenance. Courtney has been a long-time advocate for utilizing private sector capacity to assist with submarine maintenance, citing the benefits of lower costs and increased efficiency.

Key Takeaways:

  • The US Navy has awarded a $125 million contract to General Dynamics Electric Boat for the maintenance availability of the USS Hartford, which is expected to support work at the Groton Shipyard through February 2022.
  • Congressman Joe Courtney praised the Navy's decision, stating that it is a "strong vote of confidence in Groton's skilled workforce capability and the work they do to build and maintain our submarine fleet."
  • The Navy is expected to award the full maintenance availability next year, which will be supported by the planning work conducted by General Dynamics Electric Boat.
  • Congressman Courtney has been a long-time advocate for utilizing private sector capacity to assist with submarine maintenance, citing the benefits of lower costs and increased efficiency.
  • In 2018, the Congressional Budget Office (CBO) released an analysis showing that between 1993 and 2017, the average costs of submarine repair availabilities at private shipyards were 38 percent lower than at public shipyards.
  • The Government Accountability Office (GAO) released a report requested by Congressman Courtney and members of the House Readiness Subcommittee outlining severe delays in addressing attack submarine maintenance requirements.
  • The GAO reported that "attack submarine maintenance delays are getting longer and idle time is increasing," and identified shifting more repair work from the public to private shipyards as a way to mitigate future shortfalls.

Statistics:

  • The contract is valued at over $125 million.
  • The contract is expected to support work at the Groton Shipyard through February 2022.
  • The Navy is expected to award the full maintenance availability next year.
  • The average costs of submarine repair availabilities at private shipyards were 38 percent lower than at public shipyards between 1993 and 2017, according to a 2018 CBO analysis.

Sources:

  • Congressman Joe Courtney's August 17, 2020 Press Release.
  • The Government Accountability Office (GAO) report outlining severe delays in addressing attack submarine maintenance requirements.
  • The Congressional Budget Office (CBO) analysis showing that between 1993 and 2017, the average costs of submarine repair availabilities at private shipyards were 38 percent lower than at public shipyards.

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