The US Department of Defence has approved a contract with aerospace and defence company General Dynamics to build nine next-generation attack submarines, despite delays in fulfilling a previous order, Bloomberg reports.
Michael Duffey, the US deputy secretary of defence for acquisition and sustainment, confirmed that the fixed-price contract for nine Block VI Virginia-class submarines complies with all US legal requirements.
The value of the new contract has not been disclosed. However, the previous order for nine Block V submarines was valued at $22.5 billion. According to Duffey, the multiyear agreement is expected to save about $2.4 billion.
The Pentagon “is taking essential steps to award a multiyear contract,” the deputy secretary said.
Representatives of the US Navy and General Dynamics declined to comment on the new agreement. The company is expected to release its financial results on July 29.
Virginia-class submarines are fourth-generation nuclear-powered multi-role attack submarines operated by the US Navy. They are designed for deep-water anti-submarine warfare as well as operations in coastal waters.
By Jeyhun Aghazada
