BIW gets $2.8B, 4-destroyer contract
Bath Iron Works has secured a $2.8 billion Navy contract for four DDG 51 Arleigh Burke-class destroyers to be built over the next five years.
The Bangor Daily News reported that the Navy awarded design and construction contracts for nine ships in this round of awards, which granted Huntington Ingalls Shipbuilding in Pascagoula, Miss., a deal for five ships.
Maine Today Media reported BIW's contract includes an option for a fifth ship, at around $700 million, if the Navy can reach a deal with Congress to cover a $300 million funding shortfall for that ship.
Reuters reported Ingalls will earn a 14% profit margin on its contract, but a Navy spokesman did not have details on the profit margin BIW parent General Dynamics Corp. is expected to earn in the deal.
Dan Dowling, president of the Local S6 unit of the International Association of Machinists and Aerospace Workers at BIW, told the BDN that the contract decision provides more security for workers at the shipyard, where approximately 5,400 people are employed.
The shipyard already has five ships under contract, including three Zumwalt-class DDG 1000 destroyers and two other Arleigh Burke-class DDG 51s scheduled for delivery in 2016 and 2017.
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