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July 7, 2010

BIW gets $105.4 million more for Zumwalts

The U. S. Navy has awarded Bath Iron Works, a subsidiary of General Dynamics (NYSE: GD), a $105.4 million modification to a previously awarded contract for procurement of long-lead-time material and engineering, production and support services associated with the construction of DDG 1001, and for long-lead-time material procurement associated with DDG 1002. The original contract was awarded in February 2008. Work encompassed by this modification is expected to be completed by February 2011.

Jeff Geiger, president of Bath Iron Works, said, "We see this award as yet another expression of the Navy's confidence in our ability to efficiently construct and deliver all three ships of the Zumwalt class. We're making good progress building the lead ship, DDG 1000, building momentum as we ramp up our construction efforts. This award will allow us to maintain progress on our DDG 1001 start-up and initiate timely procurement of key long-lead material items to support the DDG 1002 construction schedule."

Bath Iron Works employs approximately 5,700 people. Since 1991, the shipbuilder has manufactured and delivered 32-Arleigh Burke (DDG 51) class destroyers to the U.S. Navy. Two additional ships are currently under construction for delivery in 2011. In addition, BIW is the lead designer and builder for the Navy's Zumwalt (DDG 1000) class program.


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