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General Dynamics, HII Secure Navy DDG 51 Destroyer Yard Support Contracts

General Dynamics (NYSE: GD) subsidiary Bath Iron Works and HII (NYSE: HII) have received contracts to provide lead and follow yard support services for the U.S. Navy’s DDG 51 Arleigh Burke-class destroyers.

The cost-plus-fixed-fee contract awarded by Naval Sea Systems Command to Bath Iron Works has a base value of $58.9 million and contains options that could bring the total contract amount to $418.5 million if exercised, the Department of Defense said Friday.

The contract of HII’s Ingalls Shipbuilding division with the service branch has a base amount of about $26 million and includes four option years that could increase the contract ceiling to $185 million.

HII said its division will continue to provide technical management and related services through the contract in support of coordinated DDG 51 production efforts.

Bath Iron Works will perform contract work at its facility in Maine through November 2024.

Work on HII’s contract will primarily occur in Pascagoula, Mississippi, and will run until December 2024.

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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