Electric Boat Awarded Contract for First Nuclear Submarine USS Nautilus, Launching General Dynamics

The U.S. Navy awards Electric Boat the contract to design and build the world’s first nuclear-powered submarine, USS Nautilus (SSN-571), marking a pivotal moment in the military-industrial complex’s evolution. The contract launch demonstrates how Cold War nuclear competition drives massive defense expenditures into private contractors for cutting-edge weapons systems. Electric Boat, a submarine manufacturer dating to the early 20th century, becomes the centerpiece of a new defense conglomerate when CEO John Jay Hopkins reorganizes it as General Dynamics Corporation in 1952. Hopkins, a strong advocate of nuclear power and its military applications, positions General Dynamics to dominate nuclear submarine production for decades, establishing the template for specialized defense contractors with monopolistic relationships to specific weapons systems.

The Nautilus project represents the Pentagon’s willingness to fund revolutionary and expensive military technologies through cost-plus contracts that guarantee contractor profits regardless of development challenges. The submarine’s design and construction require unprecedented engineering advances and massive capital investment that only government contracts can support. Admiral Hyman Rickover oversees the nuclear propulsion program with notorious intensity, establishing close working relationships between Navy nuclear specialists and Electric Boat engineers that blur institutional boundaries. This fusion of military and corporate technical expertise creates permanent dependencies, as the Navy becomes reliant on Electric Boat’s specialized knowledge while the contractor’s entire business model depends on sustained naval contracts.

USS Nautilus launches in 1954, ushering in a new era of naval warfare and solidifying General Dynamics’ position as a prime defense contractor. In 1959, Electric Boat builds the first ballistic missile submarine, USS George Washington (SSBN-598), further cementing its monopoly on nuclear submarine construction. General Dynamics acquires Convair in 1953, expanding into aircraft production and becoming one of the largest defense conglomerates. Since 1974, only Electric Boat and Newport News build submarines for the U.S. Navy, demonstrating how Cold War programs create consolidated contractor oligopolies. The nuclear submarine program exemplifies how national security priorities channel billions in taxpayer funds into private corporations, creating entities whose profits depend on perpetual arms races and military technological competition.