US Navy awards $1.8bn contract to General Dynamics for Zumwalt-class destroyers

General Dynamics Bath Iron Works, Bath, Maine, is being awarded a $1,825,665,914 fixed-price-incentive contract for the construction of Zumwalt-class destroyers DDG 1001 and DDG 1002. These multi-mission surface combatants are the second and third ships of the Zumwalt-class program. The mission of the DDG 1000 destroyer is to provide credible independent forward presence and deterrence.

DDG 1000 will provide advanced land attack capability in support of the ground campaign and contribute naval, joint, or combined battle-space dominance in littoral operations. This contract includes options, which, if exercised, would bring the cumulative value of this contract to $2,002,000,000. Work will be performed in Bath, Maine (59.9 percent); Parsippany, N.J. (3.5 percent); Coatesville, Pa. (3.2 percent); Falls Church, Va. (2.6 percent); Pittsburgh, Pa. (1.3 percent); Augusta, Maine (1.3 percent); and other various locations (28.2 percent), each having less than 1 percent. Work is expected to be completed by February 2018. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Sea Systems Command, Washington D.C., is the contracting activity (N00024-11-C-2306).