BWXT subsidiaries reach $2.1bn deal for naval nuclear reactor components

Hemanth Kumar 13 February 2019 (Last Updated February 13th, 2019 13:16)

BWX Technologies’ (BWXT) subsidiaries have entered into a pricing agreement on new contracts, valued at $2.1bn in total, to manufacture naval nuclear reactor components and fuel for the US Navy.

BWXT subsidiaries reach $2.1bn deal for naval nuclear reactor components
BWX Technologies’ subsidiaries agreed on new pricing contracts to manufacture naval nuclear reactor components and fuel. Credit: US Navy.

BWX Technologies’ (BWXT) subsidiaries have entered into a pricing agreement on new contracts, valued at $2.1bn in total, to manufacture naval nuclear reactor components and fuel for the US Navy.

BWXT Nuclear Operations Group (BWXT NOG) and Nuclear Fuel Services (NFS) signed the agreement with the US Naval Nuclear Propulsion Program.

The contracts include future-year options with initial contract awards expected to take place in the first quarter of this year.

BWXT noted that the balance contract option awards are subject to annual Congressional appropriations and are expected to occur next year.

BWX Technologies president and CEO Rex Geveden said: “We are exceedingly pleased to continue supporting the Navy’s shipbuilding plans. This work is the centrepiece of our nuclear national security portfolio and reflects our position as a trusted supplier for these critical systems.”

The naval nuclear reactor component manufacturing and material procurement work to be delivered under the contract is valued at more than $1.7bn, including future-year options.

These activities are designed to primarily support the US Virginia-class and Columbia-class submarines construction at BWXT NOG locations in Lynchburg, Virginia; Barberton and Euclid, Ohio; and Mount Vernon, Indiana.

“This work is the centrepiece of our nuclear national security portfolio and reflects our position as a trusted supplier for these critical systems.”

The remaining work involves the manufacture and delivery of fuel and support activities for the US Naval Nuclear Propulsion Program, as well as development work for future Naval Reactors programmes. These activities will be carried out at NFS facility in Erwin, Tennessee.

The US Naval Nuclear Propulsion Program provides military-grade nuclear propulsion power plants, and ensures their safe and long-lasting operation. The programme’s remit covers “all related facilities, radiological controls, environmental safety, and health matters, as well as selection, training, and assignment of personnel”, according to the government website. To meet this objective, it incorporates a network of specialist research labs, nuclear-capable shipyards and training facilities.

BWXT expects to reach pricing agreement for components for the second carrier in the US Navy’s plans to block-purchase two Ford-class aircraft carriers.

In February last year, BWXT NOG received a $492m contract to produce naval nuclear reactor components for the US Navy.

–Additional reporting by Talal Husseini.