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  • Thursday, November 21, 2024
DDG 51 Destroyer/General Dynamics

Navy Awards $14.6B in Arleigh Burke-Class Destroyer Contracts With General Dynamics, HII

The U.S. Navy awarded $14.6 billion in two multiyear contracts with General Dynamics‘ (NYSE: GD) Bath Iron Works business and HII‘s (NYSE: HII) Ingalls Shipbuilding division for the construction of Flight III Arleigh Burke-class destroyers.

General Dynamics will build three DDG 51 ships while HII will construct seven destroyers under the fixed-price incentive (firm target) award, the Department of Defense said Wednesday.

Deliveries to the Navy are expected to run through fiscal year 2026 for GD Bath Iron Works and FY 2027 for HII Ingalls.

The service branch also has options to order additional ships and provide for post-delivery availabilities and other relevant efforts under the contracts.

Both companies announced the contracts in early August, with HII highlighting it has provided the Navy with 35 Arleigh Burke-class ships to date and General Dynamics detailing that it is currently constructing six DDG 51 destroyers for the service branch.

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