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Navy awards billion dollar gear contract

Written by Nick Blenkey
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DDG 51 class destroyer

FEBRUARY 14, 2016 —Philadelphia Gear Corp., King of Prussia, PA, is being awarded a firm-fixed-price contract for non-recurring engineering of main reduction gears for DDG 51 Arleigh Burke class guided missile destroyers.

The contract includes options which, if exercised, would bring the cumulative value of this contract to $1,040,688,650.

Work will be performed in Santa Fe Springs, CA (79.2 percent); Kansas City, MO (7.2 percent); St. Augustine, FL (3.6 percent); Latrobe, Pennsylvania (2.1 percent); Erie, PA (1.1 percent); and other locations of less than one percent each (6.8 percent), and is expected to be completed by February 2017.

The contract was competitively procured via the Federal Business Opportunities website, with two offers received. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-16-C-4202)

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