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June 10, 2021

Despite possible cut in new ships, BIW gets $55M contract for Navy destroyer services

Photo / Courtesy BIW The USS Daniel Inouye, an Arleigh Burke-class destroyer built at BIW in 2019, heads out to sea trials.

Bath Iron Works on Thursday announced it has been awarded a $55 million contract extension from the U.S. Navy to provide lead yard services for Arleigh Burke-class destroyers over the next year.

BIW will provide configuration management, logistics, supply chain, engineering and design services for the 500-foot guided missile warships, according to a news release.

The shipyard, owned by Virginia-based General Dynamics Corp. (NYSE: GD), has provided design and technical services for building and upgrading the Burke-class (DDG 551) destroyers since 1987.

“This contract extension demonstrates the Navy’s continued faith in Bath Iron Works to be the lead shipyard and design agent for this critical program,” said Eugene Miller, Bath Iron Works vice president of programs and planning.

“Ongoing modernization of the class’s Flight III configuration ensures it will remain the most versatile surface combatant in the fleet for years to come.”

Maine’s congressional delegation issued a news release of its own in response to the announcement, saying, “At a time when many American adversaries are increasing their naval capabilities, investing in the DDG 51 destroyer is vitally important to our national security. The additional funding provided by this contract modification will help Maine shipbuilders continue to produce the best, most reliable warships in the world for American sailors.”

The delegation recently spoke out against President Joe Biden’s proposed 2022 federal budget draft, which cut expenditures for two previously planned Burke-class destroyers to funding for a single ship.

Bath Iron Works currently is constructing six Burke destroyers: Carl M. Levin (DDG 120), John Basilone (DDG 122), Harvey C. Barnum Jr. (DDG 124), Patrick Gallagher (DDG 127), Louis H. Wilson Jr. (DDG 126) and William Charette (DDG 130). The yard is also building the third in the Zumwalt class of destroyers, the Lyndon B. Johnson (DDG 1002).

BIW and the Mississippi yard of Huntington Ingalls Industries’ (NYSE: HII) are the only two builders of the Burke destroyers. Over 60 of the ships are now in service, and BIW has produced 37 of them including the first one, which launched in 1989. BIW completed its most recent Burke destroyer in 2019.

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