Megadeal

The Navy has awarded a $17 billion contract -- the largest shipbuilding contract in the service's history -- to General Dynamics Electric Boat for the construction of 10 Virginia-class submarines, according to Defense Department contract announcements.

The fixed-price incentive multiyear contract includes options for on-board repair parts in support of each submarine. The service expects work to wrap up in August 2024.

The Block IV contract allows for a two-per-year build rate in fiscal years 2014 through 2018, according to a Navy statement issued on April 28.

“The Virginia-class program is a model of acquisition excellence,” Rear Adm. David Johnson, program executive officer for submarines, said in the statement. “The Block IV award is the largest shipbuilding contract in U.S. Navy history in terms of total dollar value and builds upon the Virginia-class program's successful Navy and industry relationship.”

The Block IV contract continues the Virginia-class program's teaming arrangement between prime contractor Electric Boat and major subcontractor Huntington Ingalls Industries-Newport News Shipbuilding.

“Block IV submarines will incorporate modification that reduce acquisition and lifecycle costs. Reducing the ships' lifecycle cost, an initiative called '3:15,' aims to decrease the number of major shipyard availabilities from four to three, allowing for an additional deployment per hull -- raising each submarine's capability from 14 to 15 full-length deployment,” the statement reads.