Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

April 7, 2009

Navy plan a boon to BIW

Defense Secretary Robert Gates yesterday unveiled a federal defense budget that would send billions of dollars of additional work to Bath Iron Works.

The new defense budget lays out a plan that would have BIW build all three of the Navy's next generation Zumwalt-class destroyers, also known as the DDG-1000. BIW, a General Dynamics' subsidiary, is already building the first DDG-1000. Work began on that ship in February, BIW spokesman Jim DeMartini told Mainebiz. The second DDG-1000 was slated to be built by BIW competitor Northrop Grumman at its shipyard in Pascagoula, Miss., while funding for the third ship was thought to be in jeopardy. However, Sen. Susan Collins yesterday told the Times Record that funding for the third ship will be included in the 2010 budget. "My goal has always been to help ensure a steady work flow at BIW and a strong industrial base for shipbuilding," Collins said in a statement. "That is why I worked hard to convince the president and the Navy to include full funding for a third DDG-1000 in the budget, and I am delighted that they have agreed."

DeMartini couldn't say what the new plan would mean in terms of jobs created without giving away too much information to competitors. He did say, however, that BIW welcomed the news. "The only thing I can say is it looks like a good first step to try to get stability into the shipbuilding industry."

Defense Secretary Gates said that building all three ships at one shipyard would create efficiencies and save money, according to NavyTimes. However, Gates said that if the first ship is not built on cost and schedule, the second and third ships would be cancelled, the NavyTimes reported. DeMartini told Mainebiz that he is confident that BIW's $1.4 billion contract to build the first DDG-1000 will be completed without mishap. Because of the preliminary, computer-aided design work done on the DDG-1000, DeMartini said BIW has "virtually built this ship a thousand times." "We are on record as stating that we're going to build this like a follow-up ship," he said. "The problems traditionally encountered in a brand new first-of-class ship -- we're going to do everything we can to avoid those."

The defense budget is not set in stone. Negotiations between the Navy and the contractors still need to be completed, and the budget needs congressional approval. "That process will work itself out over next several months and hopefully will come out as the defense secretary has proposed it," DeMartini said.

 

Sign up for Enews

Comments

Order a PDF