Navy awards HII, Bath Iron Works multiyear contracts for 10 destroyers

The Navy today awarded two multibillion-dollar procurement contracts, one to Huntington Ingalls Industries and one to Bath Iron Works, for Arleigh-Burke class destroyers.

HII will build six DDG-51 ships as part of its $5.1 billion contract. Two of those destroyers are for fiscal year 2018 followed by one per year from FY-19 through FY-22.

The $3.9 billion award to Bath Iron Works is for four destroyers, one each year from FY-19 through FY-22.

Navy acquisition executive Hondo Geurts said in a statement the service saved $700 million through the multiyear procurement.

"These contract awards are further evidence of the Navy's continued delivery of lethal capacity to the nation with a sense of urgency while ensuring best value for the taxpayer," Geurts said.

"We executed this competition on a quick time line 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," he added.

Both contract announcements state there is potential to build more destroyers.

"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," Geurts said.