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Navy Funds Two Fiscal Year 2016 Arleigh Burke Class Destroyers

By NAVSEA Office of Corporate Communications | March 30, 2016

WASHINGTON - Today the Navy funded two Fiscal Year (FY) 2016 DDG 51 Arleigh Burke Class destroyers: one ship under a previously awarded FY13 - 17 multiyear procurement (MYP) contract with Huntington Ingalls Industries, Huntington Ingalls Incorporated (HII), and one ship under a previously awarded FY13-17 MYP contract with General Dynamics Bath Iron Works (BIW).


These actions bring the total number of funded ships to eight of the ten awarded across the FY13-17 MYP contracts, stabilizing the industrial base and increasing Economic Order Quantity (EOQ) savings to the Navy. 


"These funding actions demonstrate the Navy's continued success in executing the DDG 51 class shipbuilding program," said Capt. Mark Vandroff, DDG 51 program manager. "By successfully leveraging competition throughout the DDG 51 shipbuilding program, the Navy continues to generate cost savings while delivering vital warfighting capability."


A competitive allocation strategy used in the DDG 51 class shipbuilding program since 1996, known as Profit Related to Offers, or PRO, uses Fixed Price Incentive Firm Target contracts to ensure reasonable prices while maintaining the industrial base.  Congressional approval for the use of MYP contracts facilitated program budget savings of more than $2.2 billion while enabling the shipbuilders and equipment manufacturers to more efficiently plan future workloads.  


These two FY16 destroyers are being procured in the Flight IIA configuration, relying on a stable and mature infrastructure while increasing the ship's air and missile defense capabilities through spiral upgrades to the weapons and sensor suites. 


Flight III remains on track for introduction on a FY16 ship with the additional DDG 51 Class ship authorized and appropriated by Congress in FY16 designated by the Navy as a Flight III baseline ship.  The Flight III design will replace the AEGIS AN/SPY-1D radar with the SPY-6 radar (Air and Missile Defense Radar (AMDR)) and provide for more electrical power and cooling capacity.  


"The continued support of Congress for the DDG 51 program, including the appropriation of funding for an additional DDG 51 class ship in fiscal year 2016, enables the Navy to continue advancing the superior technologies and warfighting capabilities of the Navy's fleet," said Vandroff.