Electric Boat wins $85M contract for sub work

WASHINGTON – Connecticut’s Electric Boat submarine shipyard has been awarded an $85 million contract for work next year on the USS Texas, a move expected to ease some future job cuts at the facility, officials said Monday.

“This contract will curb some of the planned layoffs at EB and provide steady work for the employees at the yard,” said Rep. Rob Simmons, R-Conn., whose district includes the shipyard.

Since the Navy contract is for 2007, it won’t affect Electric Boat’s plans to cut up to 2,400 jobs this year, the company said.

Officials had no immediate estimate on how many jobs the contract could help save beginning next year.

“It will be important work for the shipyard, especially as we exit the repair and overhaul business,” said Electric Boat spokesman Bob Hamilton.

Last month, after the Navy’s decision to move most of its sub maintenance work from Electric Boat to Maine’s Portsmouth Naval Shipyard, the firm warned it may need to halve its 11,800-employee work force in future years.

The contract on the Texas, a Virginia class submarine, does not mark any apparent change in the Navy’s policy of relying on Portsmouth for maintenance work, a Simmons aide said.

Electric Boat will handle “post shakedown availability” work completing the Texas before delivery to the Navy. The contract is not for maintenance work, officials said.

Northrop Grumman’s Newport News, Va., shipyard was originally set to do the work. But the Navy decided it could save about $30 million by opting for Electric Boat, which has a dry-dock facility for a special hull treatment the Texas needs, Simmons said.

The sub’s crew will be able to settle in its New London homeport earlier, Simmons added.

Connecticut officials hoping to save jobs at Electric Boat are lobbying the Navy to increase sub production from one per year to two.