December 26, 2018

BIW lands $910M contract for fifth DDG 51 destroyer

Courtesy / Bath Iron Works
Courtesy / Bath Iron Works
An Arleigh Burke-class destroyer under construction at the General Dynamics Bath Iron Works shipyard in Bath. The shipyard has landed a $910.72 million contract to build a fifth DDG-51 destroyer as part of the multi-year award announced in September.

The U.S. Navy awarded General Dynamics Bath Iron Works a $910.72 million contract to build a fifth DDG-51 destroyer as part of the multi-year award announced in September.

In the most recent multi-year competition for fiscal years 2018-2022, the Navy awarded BIW a contract valued at $3.9 billion for the construction of four Arleigh Burke-class destroyers. It also awarded Huntington Ingalls Industries in Pascagoula, Miss., a six-destroyer contract valued at $5.1 billion.

In exercising its option to build an additional destroyer, the Navy held a separate competition for an option ship as part of its commitment to growing the fleet. The Arleigh Burke-class destroyer will be funded in the fiscal year 2019 budget.

"Bath Iron Works is privileged to continue producing state-of-the-art surface combatants for the longest running naval shipbuilding program in our nation's history," BIW President Dirk Lesko said in a news release. "This award demonstrates the vital role the DDG 51 plays in the security posture of the United States and the confidence the Navy has in our shipyard to produce these important assets."

There are currently five DDG 51 destroyers in production at Bath Iron Works: Daniel Inouye (DDG 118), Carl M. Levin (DDG 120), John Basilone (DDG 122), Harvey C. Barnum (DDG 124) and Patrick Gallagher (DDG 127). The shipyard's backlog includes Louis H. Wilson Jr. (DDG 126) and the five ships that are part of the multi-year contract awarded in this fall. BIW also is building the third Zumwalt-class destroyer, Lyndon B. Johnson (DDG-1002).

BIW, a business unit of General Dynamics (NYSE: GD), is the lead shipyard in the Navy's Arleigh Burke DDG-51 destroyer program.

Statement of congressional delegation

In a joint statement with U.S. Rep. Chellie Pingree, D-Maine District 1, U.S. Sens. Susan Collins, R-Maine, and Angus King, I-Maine, said U.S. Secretary of the Navy Richard V. Spencer had called to inform them of the award.

"The Navy's decision to build an additional DDG-51 at BIW is great news for the hardworking men and women at the shipyard," they stated. "They can now spend the holidays with their families knowing that this additional ship will help keep the workload stable in the months and years ahead."

In addition to the five DDG-51s already funded in FY 2018 and FY 2019, the delegation said they will seek to ensure that Congress provides the necessary funding and statutory authority for the Navy to procure the six additional DDG-51s called for under the multiyear contract and up to three additional option ships.

Collins is a senior member of the Senate Defense Appropriations Subcommittee, King is a member of the Senate Armed Services Committee and Pingree is a member of the House Appropriations Committee.

In September, Collins and King both advocated for the passage of the fiscal year 2019 Defense Appropriations bill, which included funding for three Arleigh Burke-class destroyers in 2019, while also including $250 million in advanced procurement funding for an additional destroyer in fiscal year 2020. The legislation was signed into law.


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