Navy awards $400 million submarine repair contract

Newport News shipbuilder works on a torpedo tube shutter door. Newport News is one of only two U.S. shipyards capable of building nuclear-powered submarines Newport News shipbuilder works on a torpedo tube shutter door. Newport News is one of only two U.S. shipyards capable of building nuclear-powered submarines Chris Oxley/HII

SEPTEMBER 30, 2015 – Huntington Ingalls Industries (NYSE:HII) Newport News Shipbuilding division has been awarded a potentially sizeable Navy submarine repair contract.

The contract is a multiple-award, indefinite-delivery/indefinite-quantity contract to perform repair efforts for in-service nuclear-powered submarines, special mission submersibles, moored training ships, and submarine support facilities. Specifically, repair efforts include overhaul, maintenance, repair, modernization upgrades, technical engineering support, supplies and services, and nuclear related touch labor support efforts. The contract contains a five-year ordering period with a cumulative ceiling value of $400 million.

A multiple-award indefinite delivery, indefinite quantity contract is a base contract that is issued to multiple awardees. The contract establishes the scope of services or goods that can be ordered against it, the order requirements and the maximum cost allowance during the life of the contract.

The contract does not include options and allows orders to be placed by all the naval shipyards and some Naval Supply Systems Command activities.

"We are proud to continue our support of the U.S. Navy by providing them with a submarine fleet that is second to none," said Matt Needy, Newport News' vice president, submarines and fleet support, "and we appreciate the Navy's confidence in Newport News Shipbuilding providing them with reliable submarine modernization in a timely and cost-effective manner."

Newport News is one of only two U.S. shipyards capable of building nuclear-powered submarines and has a long history of performing ship repair projects for the U.S. government, ranging from paint repair to complete hull and machinery renovation.

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