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Navy Awards $6.1 Billion in Nine Destroyer Deal

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USS Michael Murphy (DDG 112) is moored at its homeport at Joint Base Pearl Harbor-Hickam. US Navy Photo

USS Michael Murphy (DDG-112) is moored at its homeport at Joint Base Pearl Harbor-Hickam. US Navy Photo

The Navy has awarded $6.1 billion in contracts to Huntington Ingalls Industries (HII) and General Dynamic Bath Iron Works (BIW) for nine Arleigh Burke–class guided missile destroyers (DDG-51) to be purchased between Fiscal Years 2013 to 2017 in a massive multi-year shipbuilding deal, Naval Sea Systems Command told USNI News on Monday.

The contract award has HII building five of the hulls for $3.3 billion and BIW four for $2.8 billion. The multi–year deal — starting with future ships Paul Ignatius (DDG-117) and Daniel Inouye (DDG-118) — includes an option for a tenth DDG-51 if the Navy can overcome a sequestration funding challenge. The extra ship would likely be built in 2014 by BIW, NAVSEA said.

The price per hull comes to $660 million for HII and $700 million for BIW. The cost for the hulls does not include so-called government furnished equipment like radars or combat weapon systems.

The competition for the new hulls was constructed between BIW and HII under a so-called ‘Profit Related to Offers’ scheme.

“By leveraging competition in the DDG-51 class shipbuilding program, these shipbuilders will continue their proud histories in delivering these highly capable ships to the fleet while meeting critical operational requirements for integrated air and missile defense capab