HII, General Dynamics Secure Navy Multiyear Procurement Contracts for Arleigh Burke-Class Destroyers

HII’s (NYSE: HII) Ingalls Shipbuilding division and General Dynamics’ (NYSE: GD) Bath Iron Works subsidiary have received multiyear procurement contracts from the U.S. Navy to build nine DDG 51 Arleigh Burke-class guided-missile destroyers in Flight III configuration.

Naval Sea Systems Command said Tuesday the fixed-price-incentive firm target awarded to HII covers the construction of six DDG 51 class ships from fiscal years 2023 through 2027.

The FPIF contract with Bath Iron Works calls for the development of three destroyers between FY 2323 and FY 2026.

“These awards provide a long term stable demand signal to the shipbuilder and industrial supply base, encouraging industry investment in the workforce,” said Carlos Del Toro, secretary of the Navy and a 2023 Wash100 awardee.

The Department of Defense said Tuesday the MYP contracts include options for the construction of additional ships in the next five years, design budgeting requirements, engineering change proposals and post-delivery availabilities.

HII will perform work on the Navy contract through June 2034. The company handed over to the service the first Flight III destroyer, USS Jack H. Lucas (DDG 125), in June.

Work on the BIW contract will run through December 2023.

Arleigh Burke-class destroyers can support various operations, including power projection, peacetime presence, sea control and crisis management and are designed to counter aerial, surface and subsurface threats.

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