April 28, 2014 / 9:10 PM / 3 years ago

General Dynamics, Huntington win $17.6 bln U.S. Navy submarine deal

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WASHINGTON, April 28 (Reuters) - The U.S. Navy on Monday awarded a $17.6 billion contract for 10 more Virginia-class attack submarines to General Dynamics Corp and its major subcontractor, Huntington Ingalls Industries Inc, the largest Navy shipbuilding contract ever.

The contract, which funds work on two Virginia-class submarines per year from fiscal year 2014 through 2018, resulted in savings of over $2 billion, effectively giving the Navy 10 ships for the price of nine, said Navy Captain David Goggins, program manager for the Virginia-class submarines.

Rear Admiral David Johnson, the Navy's program executive officer for submarines, said the new contract would result in additional reductions in procurement by taking advantage of economic order quantities, but will also lower operating costs. (Reporting by Andrea Shalal; Editing by Ros Krasny and Sandra Maler)

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