HII: $5B DDG 51 contract

Huntington Ingalls Industries of Pascagoula, Miss., is awarded a $5,104,668,778 fixed-price-incentive, firm target multiyear contract for construction of six DDG 51 class ships, two in FY 2018 and one each in FY-19 through FY-22. This contract includes options for engineering change proposals, design budgeting requirements, and post-delivery availabilities on the awarded firm multi-year ships, which, if exercised, would bring the cumulative value of this contract to $5,253,076,779. The contract includes options for construction of additional DDG 51s. These options may be subject to future competitive actions in accordance with the terms and conditions of the contract, and therefore the dollar values are considered source selection sensitive information and will not be made public at this time (41 U.S. Code 2101, et seq., Federal Acquisition Regulation (FAR) 2.101 and FAR 3.104). Work will be performed in Pascagoula (91%; Erie, Pa. (1%); and other locations below 1 percent (totaling 8%), and is expected to be completed by April 2029. FY-2018 Navy shipbuilding and conversion funding in the amount of $1,712,643,749 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was procured via a limited competition between Huntington Ingalls Inc. and Bath (Maine) Iron Works pursuant to 10 U.S. Code 2304 (c) (3) and FAR 6.302-3 (Industrial Mobilization), with two offers received. In the same Sept. 27 DoD announcement, Bath Iron Works is awarded a $3,904,735,559 fixed-price-incentive, firm target multi-year contract for construction of four DDG 51s, one each in FY-19 through FY-22. This contract also includes options for construction of additional DDG 51s. These options may be subject to future competitive actions in accordance with the terms and conditions of the contract, and therefore the dollar values are considered source selection sensitive information and will not be made public at this time). Work will be performed in Bath, Maine (61%); Cincinnati, Ohio (5%); Atlanta (4%); York, Pa. (2%); Coatesville, Pa. (2%); Falls Church, Va. (2%); South Portland, Maine (1%); Walpole, Mass. (1%); Erie, Pa. (1%); Charlottesville, Va. (1%); and other locations below 1 percent (totaling 20%), and is expected to be completed by June 2028. Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD 09/27/18)