The Navy awarded Britain’s BAE Systems, Huntington Ingalls Inc.’s Continental Maritime [HII], and General Dynamics National Steels and Shipbuilding Co. (NASSCO) [GD] a combined $238 million modification for maintenance of destroyers and cruisers at San Diego last Friday.
Previously, the three companies won firm-fixed-price indefinite delivery/indefinite quantity contracts to conduct complex, emergent and continuous maintenance and Chief of Naval Operations (CNO) availabilities on Arleigh Burke-class guided-missile destroyers (DDGs) and Ticonderoga-class guided-missile cruisers (CGs) in San Diego.
This new combined award is a group of modification under the earlier contracts to exercise option period two for this work on ships both homeported in San Diego and visiting the port. The work is expected to last through March 2019.
BAE spokesperson Karl Johnson, told Defense Daily that several years ago the Defense Department moved from bundling ship repair by classes in homeports to individual task orders for repair in ports. In March 2016 the Navy issued the original maintenance award for CGs, DDGs, and amphibious warships in San Diego.
This new award is the next annual option of awards for these kinds of ships.
BAE could not name specific ships covered by this award but it includes any DDGs or CGs in San Diego during the option period.
Johnson said the contract structure envisions the work occurring in each company’s facilities, at the naval station, or perhaps anywhere on the waterfront.
“So human resources means do you have the people and space to work on these ships,” he said.
No funding is obligated at award time, but Navy fiscal year 2018 and 2019 operations and maintenance funding will be obligated under each separate contract’s prospective delivery orders. Funds will expire at the end of the funding’s fiscal year, either 2018 or 2019.
The Navy said exercising the options “ensures continued facilities and human resources capable of completing complex, emergent and continuous maintenance, repair, modernization and Chief of Naval Operations availabilities on surface combatant ships” in San Diego.