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BIW Awarded $115.8M Contract

Maritime Activity Reports, Inc.

August 9, 2006

Bath Iron Works Inc. (BIW) is being awarded a $115.8m cost-plus-award-fee/cost-plus-fixed-fee contract for DDG 1000 Zumwalt Class Destroyer detailed design, and procurement of vendor furnished information (VFI) in support of the detailed design. The mission of the DDG 1000 Zumwalt Class of Destroyers is to provide independent forward presence/deterrence and to operate as an integral part of the naval, joint, or combined maritime forces. DDG 1000 will provide advanced land attack capability in support of the ground campaign and contribute naval, joint, or combined battle-space dominance in littoral operations. The total value of the detail design effort is $336m with $78.5m funded at contract award for advanced zone detail design. The remaining detail design efforts are included in a priced option valued at approximately $258m. Also at contract award, BIW will be awarded a not-to-exceed (NTE) line item for procurement of VFI valued at approximately $37m. The maximum amount for which the government is liable under the NTE prior to definitization is $18.6m (total funding at contract award). Work will be performed in Bath, Maine and is expected to be completed by December 2008. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington D.C., is the contracting activity.

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