The US Department of Defense announces the first major submarine contract to deliver on the AUKUS security deal.
The US Department of Defense has awarded a $US197 million contract to support Australia's nuclear-submarine acquisition plans. American nuclear-powered submarines are due to be sold to Australia in the 2030s if US industry can build enough new boats for the US fleet in time.
The $US197 million contract will be covered by the Australian government's payment of $US3 billion towards the deal. The contract is for engineering and design work to support the transfer of nuclear-powered submarine capabilities from the US to Australia. Australia intends to buy several second-hand Virginia-class submarines from the US in the 2030s. But the deal stipulates the US will only sell the submarines, likely second-hand, if it has built enough boats to replenish the American fleet.
The US Navy is aiming to almost double the pace of construction, to 2.33 boats per year, to achieve that. But research presented to Congress this week said the pace of production had slowed to 1.1 boats per year. Construction delays increased slightly in the past year "despite substantial investments to reduce them".
The newly announced design contract, which is unrelated to the unsigned construction contract, has been awarded to General Dynamics Electric Boat, a major navy contractor that builds submarines at shipyards in Connecticut. US commander says Australia is ready for AUKUS subs, warns of 'increasingly aggressive' Chinatold one hearing that Australia was equipped to start hosting Virginia-class submarines immediatelyThe US is due to start rotating American submarines through the base next year.
Under the AUKUS deal, Australia eventually plans to build five submarines in South Australia, using US technology and parts made in Britain. The first of those are due for delivery to the Australian navy in the early 2040s. Democratic congressman Joe Courtney, who represents Connecticut and has long been involved in the AUKUS deal, said the program was "tangibly moving forward".
Submarine Virginia Class Contract Electric Boat Joe Courtney
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