HII, General Dynamics Subsidiary Book $1.1B in Navy DDG-51 Destroyer Contract Options

HII, General Dynamics Subsidiary Book $1.1B in Navy DDG-51 Destroyer Contract Options
DDG-51 guided-missile destroyer

Huntington Ingalls Industries (NYSE: HII) and General Dynamics’ (NYSE: GD) Bath Iron Works business have received contract modifications worth $1.1B combined to continue providing construction and supply-chain support for the U.S. Navy’s Arleigh Burke-class destroyer program.

HII secured a seven-year, $936M modification exercising a fiscal 2020 option year to build an additional DDG-51 vessel along with optional engineering modifications and post-delivery services, the Department of Defense said Monday.

The award modifies a $5.3B contract issued in 2018 and raises the total value of the optional DDG 135 ship to $947.7M.

In a separate notice, the DoD said that Bath Iron Works received an eight-year, $132M modification to a potential $4B contract to help the Navy address vulnerabilities in the DDG-51 industrial base and support fleet readiness efforts.

Naval Sea Systems Command will obligate the full amount of both modifications from Navy shipbuilding and conversion funds at the time of award.

HII will perform 91 percent of contract work in Pascagoula, Miss., and the rest in various locations through June 2027. Bath Iron Works will perform their services in Bath, Maine, through June 2028.

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