About $7.1 billion for long lead material alone, for two boats - submarine ordering begins before the keel (Electric Boat)
A contract to Electric Boat awarded by the U.S. Navy, obligating about $7.10 billion. The description records long lead time material for two attack submarines, SSN 814 and SSN 815.
Contract key facts
- RecipientGeneral Dynamics
- Contract value$7,099,818,031 (≈$7.1B)
- BranchNavy
- Awarding agencyDepartment of Defense
- Awarding sub-agencyDepartment of the Navy
- Award typeDEFINITIVE CONTRACT
- Period of performance2023-10-13 〜 2035-09-30
- Contract ID (PIID)N0002424C2110
Contract scope (original)
SSN 814 & SSN 815 LONG LEAD TIME MATERIAL
Key points
- Long lead time material covers components taking years between order and delivery, which cannot wait for hull assembly.
- This contract covers long lead material for two attack submarines, SSN 814 and SSN 815, obligating about $7.10 billion.
- The period runs about twelve years, October 2023 to September 2035, since material procurement alone proceeds on that timescale.
- Of the 207 records this site holds as of 2026-09-02, 23 mention long lead, totalling about $219.2 billion, or 15.0 per cent.
- Three records mention SSN, totalling about $62.2 billion.
- The record gives no reason for combining two boats into a single contract.
1What has already begun before construction
Building a submarine starts before anything reaches the ways. Components tied to the reactor, steel for the pressure hull, major elements of the propulsion train - anything taking years between order and delivery cannot wait for hull assembly. Long lead time material is the category under which such components are secured in advance.
- 1Order long lead materialSecure components that take years (this contract)
- 2Sign the construction contractContract the building of the hull itself
- 3Begin constructionAssembly starts with material already delivered
- 4Toward commissioningEnter service after trials
That this contract runs about twelve years, 2023 to 2035, follows from material procurement alone proceeding on that timescale. Hull numbers - SSN 814 and SSN 815 - are already assigned while the record still sits at the stage of a materials contract.
2Material for two boats at 1.5 times the median
Contracts securing material in advance, rather than buying the equipment itself, run to 15 per cent of the whole. How much the length of a production cycle shapes the form of defense spending shows in how widely the phrase appears.
3What the hull numbers indicate
SSN 814 and SSN 815 in the description are numbers assigned to individual boats. Combining two into one contract reads as making material procurement more efficient by ordering sister boats together, though the record states no reason. What can be read is that about $7.1 billion is obligated for long lead material for two boats, with the period set through 2035.
Why it matters
For equipment with long production cycles, such as shipbuilding, material ordering moves years before construction starts. From the supply side it means demand for long-lead components is fixed before the main construction contract, so production planning does not align with that contract. Aggregating public data by fiscal year, material and construction contracts fall in different years, so cost per hull cannot be read from a single year.
FAQ
What is long lead time material?
Why does material alone come to about $7.1 billion?
Why does the period run to 2035?
Sources (primary)
This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.
- USAspending (award details)
- Contract ID (PIID)：N0002424C2110