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NEWS | Aug. 1, 2023

Navy Awards DDG 51 FY23-27 Multiyear Procurement Contracts

By Team Ships Public Affairs

WASHINGTON – The Navy awarded contracts to Huntington Ingalls Industries, Ingalls Shipbuilding Division (HII Ingalls) and General Dynamics Bath Iron Works (GD BIW) for the fiscal years (FY) 2023 - 2027 multiyear procurement (MYP) of DDG 51 Arleigh Burke class destroyers, August 1.

“Arleigh Burke class destroyers are the backbone of the surface fleet and one of the most successful shipbuilding programs in the history of the Navy,” said Carlos Del Toro, Secretary of the Navy. “These awards provide a long term stable demand signal to the shipbuilder and industrial supply base, encouraging industry investment in the workforce. With our industry partners, we are going to continue to build them; and they will continue to secure the seas for decades to come!” 

“These contract awards will allow the Navy to continue delivery of lethal capacity in an affordable and effective manner,” said Frederick J. Stefany, acting Assistant Secretary of the Navy for Research, Development and Acquisition. “The Navy saved $830 million for these nine ships through multiyear procurement contracts and also has options for additional ships to accelerate delivery of the critical DDG 51 Flight III capabilities to our naval force.”

HII Ingalls is being awarded a fixed-price-incentive firm target (FPIF) contract for the design and construction of six DDG 51 class ships, six in FY 2023-2027.

GD BIW is being awarded a FPIF contract for the design and construction of three DDG 51 class ships, three in FY 2023-2026. 

These multiyear procurement awards are for nine MYP ships. Additionally, 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 authorized and appropriated.

"These contracts will provide next-generation Integrated Air and Missile Defense capability for our future fleet while ensuring a stable shipbuilding and defense industrial base for the foreseeable future," said Capt. Seth Miller, DDG 51 class program manager, Program Executive Office (PEO) Ships. "The Navy is proud to be teaming with the dedicated shipbuilders at HII Ingalls and GD BIW to construct and deliver these warships to the fleet."

The destroyers are being procured in a Flight III configuration, relying on a stable and mature design while delivering critical Integrated Air and Missile Defense capability with the AN/SPY6(V)(1) Air and Missile Defense Radar. The Navy’s first Flight III destroyer, Jack H. Lucas (DDG 125), was delivered by HII Ingalls in June 2023.

As one of the Defense Department’s largest acquisition organizations, PEO Ships is responsible for executing the development and procurement of all destroyers, amphibious ships, special mission and support ships, boats, and craft.