HII Wins Nuclear Reactor Maintenance Contract

(Press Release)
Friday, September 30, 2011

Huntington Ingalls Industries, Inc. (NYSE:HII) said its Newport News Shipbuilding (NNS) division has been awarded a contract by Bechtel Marine Propulsion Corp. (BMPC) to provide maintenance services at the Kenneth A. Kesselring Site in West Milton, N.Y., a research and development facility that supports the U.S. Navy's Nuclear Propulsion Program. NNS will serve as an industrial subcontractor, providing maintenance services on the two nuclear reactor prototypes at the Kesselring site.
"Newport News Shipbuilding's skill sets, experience and commitment align well with BMPC's need for the highest-quality maintenance services for its Kesselring site," said Kent Williams, NNS' director of nuclear overhaul engineering and Kesselring site director. "We are eager to partner with BMPC to provide maintenance assistance, drive site improvement and support the company's vision going forward."
NNS successfully competed against the incumbent for the contract. The cost-plus-fixed-fee, level-of-effort contract contains a five-year base period valued at $195 million with a five-year option valued at $395 million. A NNS management team will relocate to the Kesselring site in October to begin the transition period. Performance of prototype maintenance services is scheduled to begin in January 2012.

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