General Dynamics, Huntington Awarded $6.1 Billion DDG 51 Procurement Contract

The U.S Navy recently awarded two contracts for DDG 51 Arleigh Burke-class destroyers for 2013-2017 fiscal years.

General Dynamics is being awarded a $2.8 billion fixed-price incentive firm target (FPIF) contract for the design and construction of four DDG 51 class ships, one in 2013 and one each in 2015-2017, also including a contract option for a fifth ship. 

Huntington Ingalls Industries (HII) is being awarded a $3.3 billion fixed-price-incentive firm target (FPIF) contract for the design and construction of five DDG 51 class ships, one each in 2013-2017. 

These multiyear procurement awards are for a total of nine ships, with an option for a tenth ship.

The U.S Navy's objective is to procure the tenth ship as part of the planned FY 2013-2017 MYP. The U.S Navy will work with Congress to resolve funding shortfalls resulting from sequestration reductions before contracting for the 10th ship.

"These contract awards represent great value to the taxpayer and will ensure our warfighters have the ships and systems they need to prevail in any situation," said Secretary of the Navy Ray Mabus. "By leveraging competition in the DDG 51 class shipbuilding program, these shipbuilders will continue their proud histories in delivering these highly capable ships to the fleet while meeting critical operational requirements for integrated air and missile defense capability." 

Congressional approval for the use of MYP contracts facilitated program budget savings of more than $1.5 billion while enabling the shipbuilders and equipment manufacturers to more efficiently plan future workloads. 

"I am proud of the success of the DDG 51 program and appreciate Congress' continued support and approval of the Navy's multiyear procurement request," said Mabus. "This award enables stability in our industrial base and ensures the Navy and the nation get the most efficient and affordable build plan for these destroyers." 

The destroyers are being procured in a Flight IIA configuration, relying on a stable and mature infrastructure while increasing the ship's air and missile defense capabilities through spiral upgrades to the weapons and sensor suites. 

The U.S Navy plans to introduce the first DDG 51 Flight III on the second ship in 2016.