US Navy awards $9bn MYP contracts to buy ten DDG-51-class ships

1 October 2018 (Last Updated October 1st, 2018 16:44)

The US Navy has awarded two contracts with a total value of approximately $9bn for the procurement of ten DDG-51 Arleigh Burke-class destroyers. 

US Navy awards $9bn MYP contracts to buy ten DDG-51-class ships
DDG-51-class lead ship USS Arleigh Burke. Credit: US Navy photo by mass communication specialist 1st class RJ Stratchko/Released.

The US Navy has awarded two contracts with a total value of approximately $9bn for the procurement of ten DDG-51 Arleigh Burke-class destroyers.

The DDG-51 fiscal year (FY) 2018 to FY 2022 multiyear procurement (MYP) contracts have been awarded to General Dynamics (GD) Bath Iron Works (BIW) and Huntington Ingalls Industries (HII).

Under the multiyear procurement awards, GD has secured a nearly $3.9bn fixed-price incentive firm target (FPIF) contract for the designing and development of four DDG-51-class vessels between FY 2019 and FY 2022.

The FPIF award to HII is valued at approximately $5.1bn and will involve the design and construction of a total of six destroyers within the entire contract period.

Depending on a stable and mature design, the ten ships are being acquired by the US Navy in a Flight III configuration.

“The navy saved $700m for these ten ships by using multiyear procurement contracts rather than a single year contracting approach.”

US Navy Research, Development and Acquisition assistant secretary James F Geurts said: “The navy saved $700m for these ten ships by using multiyear procurement contracts rather than a single year contracting approach.

“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.”

The Arleigh Burke-class vessels will be equipped with critical integrated air and missile defence capability with the installation of the AN/SPY6(V)(1) air and missile defence radar.

Program Executive Office Ships DDG-51 Class programme manager captain Casey Moton said: “This procurement will efficiently provide integrated air and missile defence capability for our future fleet while strengthening our critical shipbuilding and defence industrial base.

“The navy is proud to be working alongside the dedicated shipbuilders at BIW and Ingalls to continue to deliver these warships to the fleet.”