The Navy on Friday awarded Philadelphia Gear a contract potentially worth $1 billion for non-recurring engineering of main reduction gears for DDG-51 Arleigh Burke class guided missile destroyers.

The contract is firm-fixed-price and includes options which, if exercised, would bring the cumulative value of the contract to nearly $1 billion. Work is expected to be completed by February 2017.

The USS Donald Cook arriving in Rota, Spain earlier this year. Photo: U.S. Navy
The USS Donald Cook arriving in Rota, Spain earlier this year. Photo: U.S. Navy

The contract was competitively procured via Federal Business Opportunities (FBO) with two offers received.