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Navy Destroyer Contracts for HII & BIW

Maritime Activity Reports, Inc.

March 17, 2014

DDG 51: Photo credit USN

DDG 51: Photo credit USN

The Navy has announced two separate contract awards for Fiscal Year (FY) 2014 DDG 51 destroyers to Huntington Ingalls Industries (HII) and to General Dynamics Bath Iron Works (BIW). Details as follows:

Huntington Ingalls Industries
Is being provided funding of $601,990,190 for the FY 2014 DDG 51 class ship and exercised options. The modification also provides $79,400,000 in advanced procurement funding for the FY 2016-2017 ships.

General Dynamics Bath Iron Works
Is being awarded a $642,583,946 modification to their existing fixed-price incentive firm target (FPIF) contract to exercise options for construction of a DDG 51 Class ship. The modification also provides $79,400,000 in advanced procurement funding for the FY 2016-2017 ships. 

The Navy explains that these awards bring the total number of awarded ships to 10 across the FY 2013-2017 MYP contracts, stabilizing the industrial base and increasing Economic Order Quantity (EOQ) savings to the Navy. The Navy successfully worked with Congress to resolve funding shortfalls resulting from sequestration reductions before contracting for the option ship.

"These awards demonstrate the Navy's commitment to instilling the tenants of Better Buying power in our acquisition programs," said Sean Stackley, assistant secretary of the Navy for research, development and acquisition. "By successfully leveraging competition throughout the DDG 51 shipbuilding program, the Navy was able to apply the cost savings and procure one additional ship, delivering a vital warfighting asset to the Fleet." 

The destroyers are being procured in a Flight IIA configuration, relying on a stable and mature infrastructure while increasing the ship's air and missile defense capabilities through spiral upgrades to the weapons and sensor suites. 

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