UPI:
Sept. 28 (UPI) — The U.S. Navy has tapped two companies, Huntington Ingalls Industries and Bath Iron Works, to build ten of it’s Flight III Arleigh Burke-class destroyers over the next decade.
The Navy awarded contracts to the two companies on Thursday worth about $9 billion — HII was awarded $5.1 billion for its six DDG 51-class vessels, with BIW’s contract valued at $3.9 billion.
The contracts cover engineering change proposals, design budgeting requirements and post-delivery availabilities for all ten ships. The contracts also include options for an additional five DDG 51-class vessels in the future.
Navy officials say the branch saved about $700 million by using a multiyear procurement for the ships as a group, rather than contracting for each vessel individually, which will accelerate delivery of the vessels.
