Morning Briefing - September 18, 2018
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September 18, 2018

GD Wins $481 Million Mod For More Columbia Work

By ExchangeMonitor

The Naval Sea Systems Command (NAVSEA) awarded General Dynamics [GD] Electric Boat (GDEB) a $481 million modification on last Thursday for more Columbia-class ballistic missile submarine (SSBN) program long-lead time work.

The cost-plus-fixed-fee modification is in preparation for FY 2019 and 2020 lead-ship advance procurement, advance construction, and long-lead time material funding for the Columbia-class.

This award for the U.S. is being combined with a previously planned $10 million United Kingdom funding modification. This is because the U.S. and U.K. are cooperating on both nations’ next generation SSBNs, particularly sharing the Common Missile Compartment and collaborating on the PWR-3 reactor plant

The British are building the Dreadnaught-class submarine to start replacing their Vanguard-class boats in the late 2020s.

NAVSEA said the work will be subsumed into the lead ship construction contract in October 2020, when the lead ship, the future USS Columbia (SSBN-826), is set to start construction.

In a statement, GDEB President Jeffrey Geiger elaborated this contract work focuses on key aspects of development work like design, material procurement, construction and operating-cost reduction.

The Navy plans to eventually build 12 Columbia-class submarines.

The primary contract was awarded in September 2017 and with this award now has a total potential value of $6.1 billion (Defense Daily, Sept. 21, 2017).

Back in June, a Congressional Research Service report said the Navy was estimating the lead vessel would cost about $8.2 billion and the average follow-on boat would cost about $6.5 billion. In April, a Government Accountability Office (GAO) report estimated the total projected acquisition cost of the program at $102 billion.

Earlier this month Chief of Naval Operations Adm. John Richardson said while the program is on track, the service wants to find some margin in the program schedule since it is such a large and important program. Richardson also said it might require more oversight as well (Defense Daily, Sept. 5).

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