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HII Gets $907.5M in Contracts for Navy Cruiser, Submarine Planning Yard Services

Jeff Brody

Huntington Ingalls Industries (NYSE: HII) has received two contracts worth $907.5M combined to provide planning yard support services for the U.S. Navy’s nuclear-powered submarines, cruisers and destroyer ships.

HII said Friday its Ingalls Shipbuilding division will provide fleet modernization program planning, logistics, design modeling and engineering, long-lead-time material support and other post-delivery lifecycle support services for the military branch’s Spruance-class destroyers and Ticonderoga-class cruisers under a potential five-year, $453.4M contract.

The contract’s initial value is $110.4M and includes options that could extend work through December 2024 if exercised. Work will occur in Pascagoula, Miss., and Naval Sea Systems Command will obligate $4.2M in operations and maintenance funds for fiscal 2020 at the time of award.

The potential five-year, $454.1M contract awarded to HII’s Newport News Shipbuilding division covers planning, logistics, modernization, design and engineering support for the service’s new, conversion, operational and decommissioning submarines.

The contract has a two-year base period worth $91.9M and work could extend through September 2021 should the service exercise its options. NAVSEA will obligate $5.3M in fiscal 2019 funds at the time of award.

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