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Huntington Ingalls Industries (HII) is being awarded
a $3,331,476,001 fixed-price-incentive firm target (FPIF) contract for
the design and construction of five DDG 51 class ships, one each in
FY 2013-2017.
These multiyear procurement awards are for a total of nine ships, with
an option for a tenth ship. The Navy's objective is to procure the tenth
ship as part of the planned FY 2013-2017 MYP. The Navy will work with
Congress to resolve funding shortfalls resulting from sequestration
reductions before contracting for the 10th ship.
"These contract awards represent great value to the taxpayer and
will ensure our warfighters have the ships and systems they need to
prevail in any situation," said Secretary of the Navy Ray Mabus.
"By leveraging competition in the DDG 51 class shipbuilding program,
these shipbuilders will continue their proud histories in delivering
these highly capable ships to the fleet while meeting critical operational
requirements for integrated air and missile defense capability."
A competitive allocation strategy used in the DDG 51 class shipbuilding
program since 1996, known as profit related to offers, or PRO, uses
FPIF contracts to ensure reasonable prices while maintaining the industrial
base. Congressional approval for the use of MYP contracts facilitated
program budget savings of more than $1.5 billion while enabling the
shipbuilders and equipment manufacturers to more efficiently plan future
workloads.
"I am proud of the success of the DDG 51 program and appreciate
Congress' continued support and approval of the Navy's multiyear procurement
request," said Mabus. "This award enables stability in our
industrial base and ensures the Navy and the nation get the most efficient
and affordable build plan for these destroyers."
The destroyers are being procured in a Flight IIA configuration, relying
on a stable and mature infrastructure while increasing the ship's air
and missile defense capabilities through spiral upgrades to the weapons
and sensor suites.
The Navy plans to introduce the first DDG 51 Flight III on the second
ship in FY 2016. Once Flight III requirements are approved, the new
baseline will be implemented as an engineering change proposal. It is
anticipated that the Flight III design will replace the Aegis AN/SPY-1D
radar with the Air and Missile Defense Radar (AMDR) and provide for
more electrical power and cooling capacity, providing the next generation
of integrated air and missile defense and joint battle space awareness.
From Naval Sea Systems Command Office of Corporate Communication
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