US Navy awards DDG 51 multiyear procurement contracts through FY 2027

The US Navy awarded contracts for nine Flight III Arleigh Burke-class destroyers such as Jack H Lucas . (HII)

The US Navy (USN) awarded contracts on 1 August to HII's Ingalls Shipbuilding division and General Dynamics' Bath Iron Works (GD BIW) for fiscal years (FY) 2023–27 multiyear procurement (MYP) of nine Flight III DDG 51 guided-missile Arleigh Burke-class destroyers, the service confirmed that day.

The USN did not disclose any amounts for the contract award. However, Frederick Stefany, acting assistant secretary of the Navy for Research, Development and Acquisition, said in a statement, “The navy saved USD830 million for these nine ships through multiyear procurement contracts and also has options for additional ships to accelerate delivery of … DDG 51 Flight III capabilities.”

HII Ingalls is being awarded a fixed-price incentive firm target (FPIF) contract for the design and construction of six DDG 51 class ships through FY 2027.

GD BIW is being awarded a FPIF contract for the design and construction of three DDG 51 class ships through FY 2026.

In addition, each shipbuilder's contract contains options for additional ships over the next five years, providing the navy and congress flexibility to increase DDG 51 build rates, if authorised and appropriated, USN officials said.

Secretary of the Navy Carlos Del Toro said, “These awards provide a long term stable demand signal to the shipbuilder and industrial supply base, encouraging industry investment in the workforce.”