General Dynamics, Huntington Ingalls Industries to build 10 additional Arleigh Burke class destroyersNews
September 28, 2018
WASHINGTON. U.S Navy officials awarded General Dynamics Bath Iron Works -- a business unit of General Dynamics -- and Huntington Ingalls Industries (HII) contracts for the DDG 51 fiscal years (FY) 2018 - 2022 multiyear procurement (MYP) for DDG 51 Arleigh Burke class destroyers.
General Dynamics Bath Iron Works' fixed-price incentive firm target (FPIF) contract is worth $3.9 billion for the design and construction of four DDG 51 class ships.
HII's fixed-price incentive firm target (FPIF) contract is worth $5.1 billion for the design and construction of six DDG 51 class ships. The contract includes options for engineering and post-delivery efforts, which, if exercised, would bring the cumulative value of the contract to approximately $5.25 billion.
"These contract awards are further evidence of the Navy's continued delivery of lethal capacity to the Nation with a sense of urgency while ensuring best value for the taxpayer," says James F. Geurts, assistant secretary of the Navy for research, development and acquisition. "The Navy saved $700 million for these 10 ships by using multiyear procurement contracts rather than a single year contracting approach. We also have options for an additional five DDG 51s to enable us to continue to accelerate delivery of the outstanding DDG 51 Flight III capabilities to our Naval force. We executed this competition on a quick timeline that reflects the urgency in which the Navy and our industry partners are operating to ensure we meet the demands of the National Defense Strategy."
These multiyear procurement awards are for a total of 10 MYP ships. Additionally, each shipbuilder’s contract contains options for additional ships in FY18/19/20/21/22, providing the Navy and/or Congress flexibility to increase DDG 51 build rates above the 10 MYP ships in the Navy’s FY 2018 budget request, if appropriated.
The destroyers are being procured in a Flight III configuration, relying on a stable and mature design while delivering critical Integrated Air and Missile Defense capability with the AN/SPY6(V)(1) Air and Missile Defense Radar.