US Navy and GD Reach Agreement on Zumwalt Destroyer Deal

28 July 2011 (Last Updated July 28th, 2011 18:30)

The US Navy and General Dynamics (GD)-Bath Iron Works (BIW) have reached an agreement to build the second and third DDG 1000 Zumwalt-class destroyers, navy acquisition official Sean Stackley said. Defence News has quoted the official as saying: "The navy has reached an agreement with Ge

The US Navy and General Dynamics (GD)-Bath Iron Works (BIW) have reached an agreement to build the second and third DDG 1000 Zumwalt-class destroyers, navy acquisition official Sean Stackley said.

Defence News has quoted the official as saying: "The navy has reached an agreement with General Dynamics-Bath Iron Works for pricing, terms and conditions for DDGs 1001 and 1002."

The agreement was needed to ensure a fixed price contract in line with the Navy's 'should cost' estimates and the continuation of shipbuilding work at BIW shipyard.

The construction of the Zumwalt destroyer has been under way since February 2009 and a keel-laying ceremony is scheduled to be held in November this year.

Work on the second ship has been initiated with long-lead construction items, but a definitive construction contract is required to proceed to next levels.

The contract agreements were delayed due to a Nunn-McCurdy review, which revised the Navy's decision to build three, rather than seven units of the class, thereby increasing unit costs.