On December 22nd, the Navy signed a multi-year contract to construct eight new Virginia-class submarines valued at over $14 billion.  The boats will be built under a unique teaming arrangement between General Dynamics Electric Boat and Northrup Grumman Shipbuilding.  Under the agreement, each yard builds certain portions of each vessel and each yard alternates delivering the completed submarines.

$700 million (1/2 of $14 billion) spread over the 5 year length of the contract should be a welcome injection to the Hampton Roads economy and keep Virginia’s employed.