The Navy has issued contract modifications for the construction of two Arleigh Burke-class (DDG-51) destroyers under a multi-year procurement plan that runs into fiscal 2017.
The Navy awarded General Dynamics [GD] Bath Iron Works $642.6 million for one of the ships, and Huntington Ingalls Industries [HII] $601.9 million. Both contractors are receiving $79.4 million for advanced procurement of ships planned for construction in future years.
The Navy employs two contractors for the destroyers, arguing the arrangement maintains competition and keeps costs down. Once the ships are outfitted with weapons, systems and other equipment, the total cost of the Arleigh Burkes reaches $1 billion.
The announcement on Friday said the two modifications bring to 10 the number of ships under contract under the five-year multi-year procurement that began in fiscal 2013. The two vessels will be built as flight IIA ships. The Navy plans to go to the flight III version in 2016 to accommodate a new, larger and more advanced radar known as the Air Missile Defense Radar (AMDR).