HII's submarine procurement contract mod reaches US$10.2bn

Enhancing global procurement: HII's US$10.2bn contract modification for Virginia-Class submarines expands supplier network and defence capabilities

The Newport News Shipbuilding (NNS) division of Huntington Ingalls Industries (HII), has recently made an announcement that has considerable implications for global procurement and defence stakeholders.

The division has secured a contract modification valued at US$305.2M from General Dynamics Electric Boat.

This contract modification is specifically aimed at procuring long-lead-time material for two additional Block V Virginia-class submarines.

As a result, the overall value of the contract has surged to a lofty US$10.2bn.

The significance of this development extends beyond the immediate naval industry. The allocation of such substantial funds provides stability and predictability to the vast network of suppliers operating both within and beyond the US.

These suppliers play a crucial role in supporting the Virginia-class program, and their participation is vital to the success of the entire submarine industrial base.

The procurement of long-lead-time material for these advanced submarines not only supports the national security interests of the US but also reverberates across global defence.

HII's NNS division is one of the only two shipyards in the world that has the capability to design and construct nuclear-powered submarines for the US Navy.

The advanced capabilities showcased by the Block V Virginia-class submarines, such as increased firepower, stealth and manoeuvrability, are key contributors in the attempt to enhance global maritime security.

As the contract progresses, the ramifications for global procurement become more evident, with the involvement of numerous domestic and international suppliers underscoring a more robust and interconnected value chain.

Collaborating on a project of this magnitude, the supplier network facilitates the exchange of knowledge, expertise and technologies across borders, ultimately benefiting global procurement practices and bolstering supply chain resiliencies.

HII's role as a global defence provider adds further weight to the importance of this contract modification.

The advancements made in areas such as unmanned systems, cyber solutions, intelligence, surveillance and reconnaissance (ISR), as well systems such as Artificial Intelligence/Machine Learning (AI/ML) and synthetic training extend beyond national borders and are reshaping defence as we know it.

Procurement stimulates defence innovation 

The enhanced design of the Virginia-class submarines, characterised by their broader hull, yields a multitude of advantageous attributes that significantly bolster their overall performance, notably in the domain of stealth.

This expanded hull configuration affords ship designers ample room to integrate and optimise state-of-the-art sound-deadening technologies, resulting in an unprecedented level of acoustic camouflage, thereby rendering these submarines exceedingly elusive and arduous to detect.

The significance of this technological advancement is particularly accentuated in light of the ongoing and formidable naval modernisation endeavours undertaken by China.

Modernising Maritime

Notably, China's naval modernisation aims primarily at cultivating capabilities conducive to power projection and anti-access/area-denial (A2/AD) strategies, thereby posing a substantial challenge to the prevailing maritime order.

In response to this emerging threat landscape, the Virginia-class submarines have emerged as a pivotal component of the US Navy's comprehensive strategy, devised to effectively counterbalance and counteract China's initiatives, while simultaneously ensuring the preservation of a robust and enduring American presence in the geopolitically vital Asia-Pacific region.

By virtue of their advanced stealth capabilities, it is argued that these submarines assume a critical role in the overarching defence apparatus, serving as a potent deterrent against potential aggressors and fostering the maintenance of a secure and stable maritime environment within the Asia-Pacific theatre.


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