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June 9, 2022

BIW awarded $54M contract extension for Navy destroyer services

File Photo / Tim Greenway The U.S. Navy has awarded Bath Iron Works a $54 million contract extension for work on Arleigh Burke-class destroyers.

Bath Iron Works on Wednesday said it has received a $54 million contract extension from the Navy to provide services for new Arleigh Burke-class (DDG 51) destroyers over the next year.

The services for newly constructed warships include configuration management, logistics, supply chain, engineering and design services.

BIW, owned by General Dynamics (NYSE: GD), has provided design and technical expertise since 1987 for changes in the Arleigh Burke-class destroyers, which are built at Bath and at a competing yard in Mississippi, Ingalls Shipbuilding.

“This contract extension enables BIW to continue to provide the most accurate, up-to-date engineering and design services for new DDG 51 class destroyers,” said BIW President Chuck Krugh. “Our team is currently performing the fiscal year 2023 upgrade with the next-generation enhancements to the Arleigh Burke class that will ensure DDG 51s remain the most advanced surface combatants in an increasingly complex world.” 

The contract extension marks the first such announcement under Krugh, who last month was named president of the shipyard following the abrupt departure of predecessor Dirk Lesko in April. 

Bath Iron Works currently has under construction the Arleigh Burke-class destroyers Carl M. Levin (DDG 120), John Basilone (DDG 122), Harvey C. Barnum Jr. (DDG 124) and Patrick Gallagher (DDG 127), as well as the Flight III-configuration versions of the destroyers Louis H. Wilson Jr. (DDG 126), William Charette (DDG 130) and Quentin Walsh (DDG 132). 

BIW, founded in 1884, was acquired in 1995 by Reston, Va.-based General Dynamics, one of the largest defense contractors in the world. In 2021, the company reported $38.5 billion in revenue.

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