HII Shipbuilding Division Gets Potential $181M Contract for Navy DDG 51 Destroyer Support

Huntington Ingalls Industries‘ (NYSE: HII) Ingalls Shipbuilding division has received a potential five-year, $181.4 million contract to provide follow-yard services for the U.S. Navy‘s DDG 51 class guided-missile destroyers.

FYS efforts will include engineering, technical, material procurement and production support, as well as data and logistics management, lessons learned analysis, acceptance trials and post-delivery tests, the Defense Department said Monday.

Ingalls Shipbuilding will also perform post-shakedown availability, maintenance, system safety, turnover, shipyard engineering personnel, turnkey management, crew indoctrination and design support under the sole-source contract.

The division may also conduct feasibility studies for potential modification of DDG 51 destroyers under the foreign military sales program.

DoD noted the cost-plus-award-fee contract has a one-year base period, valued at $27 million, followed by four option years.

The Navy will obligate $25.5 million in fiscal 2014, 2017 and 2018 shipbuilding and conversion funds at the time of award.

Majority of contract work will take place at a shipyard in Pascagoula, Mississippi.

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