The U.S. Navy awarded Bath Iron Works 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.
Both shipyards were awarded fixed-price-incentive firm target contracts, according to Navy press release. BIW’s four-ship contract is for fiscal years 2019-2022, while Ingalls’ six-ship contract is for fiscal years 2018-22, the Navy stated.
“The Navy saved $700 million for these 10 ships by using multiyear procurement contracts rather than a single year contracting approach,” James F. Geurts, assistant secretary of the Navy for research, development and acquisition, said in the release. “We also have options for an additional five DDG-51s to enable us to continue to accelerate delivery of the outstanding DDG-51 Flight III capabilities to our naval force. We executed this competition on a quick timeline that reflects the urgency in which the Navy and our industry partners are operating to ensure we meet the demands of the National Defense Strategy.”
