General Dynamics Electric Boat is falling behind schedule and running over budget for a contract with the Navy.
The Groton-based company was tasked with delivering the first of 12 Columbia-class nuclear-powered ballistic submarines (SSBN) by 2027. However, the first submarine is on track to be delivered 12 to 16 months later than expected, according to a September report from the Government Accountability Office (GAO).
Right now, the Navy relies on a different SSBN: the Ohio class. The Navy has 14 active Ohio class submarines, as of August.
That will change soon.
“As Ohio class submarines begin to retire in 2027, the lead Columbia class submarine must be ready for its first patrol in fiscal year 2031 to avoid a gap in deterrence requirements,” the GAO report states. “Late delivery of Columbia class submarines could jeopardize the start of this planned transition.”
The two primary causes of the delays are issues with instructions for building the submarines and acquiring materials. The GAO identified these two causes in January 2023. Electric Boat tried to address these problems, but the project is still behind schedule, according to the September report.
“These delays and increases will likely worsen due to risks that are expected to be realized when completing complex tasks during final assembly and test,” the report states. “This could hinder the Navy’s ability to mitigate current delays and cost increases and its ability to stem future ones.”
Originally, the Navy planned to invest $130 billion in the research, development and construction of Columbia-class submarines.
GAO estimates the price of building these submarines will now be hundreds of millions of dollars more than expected. It will cost six times more than Electric Boat estimated, and almost five times what the Navy estimated.
“Slow work instruction issuance, poor work instruction quality, and lower than planned material availability have consistently contributed to lead submarine growth to date,” the report states. “For example, we have previously reported that when Electric Boat added more staff to help develop design products, like work instructions, the programs design costs would increase. In addition, Electric Boat previously reported that material availability is key to avoiding cost increases. Delays in the availability of relatively simple commodities can cause major delays resulting in cost increases.”
Electric Boat is one of the leading suppliers of submarines for the Navy. The company, which was founded 125 years ago, is the primary contractor for both Ohio and Columbia class SSBNs. It also builds Virginia class, Seawolf Class and Los Angeles Class submarines, according to its website.
It subcontracted the Virginia-based Newport News to help build the Columbia class vessels, the GAO states.
“The Navy and shipbuilders have taken actions intended to address construction challenges by increasing awards of SDF (Supplier Development Funding) and outsourcing work to strategic suppliers,” the report states. “However, the program has not sufficiently ensured that supplier investment and support construction goals or that outsources work meets quality expectations.”
The first Columbia class submarine will be complete by October 2028, at the earliest, according to GAO. The second submarine is on track to be completed in April, 2030. While the first two submarines are being built, the Navy plans to contract Electric Boat for the final 10 Columbia class submarines at a rate of one authorization per year, starting in the fiscal year 2026.
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