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Pentagon to Award $1B Guided Missile Destroyer Contract

By Jake Meister | February 16, 2016

The USS Arleigh Burke guided-missile destroyer moves through the Mediterranean Sea in 2003. Philadelphia Gear will engineer the destroyers’ main reduction gears under a Navy contract. (Image: Journalist 2nd Class Patrick Reilly/U.S. Navy)

Philadelphia Gear is being given a Navy contract that could be worth slightly more than $1 billion to engineer main reduction gears for the USS Arleigh Burke-class (DDG 51) guided-missile destroyers, the U.S. Department of Defense announced Friday.

The value of the firm-fixed-price contract is dependent upon the exercising of related contract options. The Navy received two offers for the contract. The majority of the labor—79 percent—will be conducted in Santa Fe Springs, Calif., with the remaining work taking place throughout the United States.

According to the U.S. Navy, it uses DDG 51 guided-missile destroyers for offensive and defensive missions. The ships can be used independently or as a part of various groups of ships, such as a carrier strike or a surface action group.

Northrop Grumman is being given a $9.2 million Navy delivery order for eight line items of repair for the Advanced Electronic Attack System. The repairs to the system benefits the EA-18G Growler electronic warfare aircraft. More than $4 million in working capital funds will be assigned with the contract award, none of which will expire at the end of the 2016 fiscal year. More than half—58 percent—of the labor will be conducted in Baltimore, with the remaining work taking place in Crane, Ind., and Bethpage, N.Y. The work should be finished by February 2017.

Raytheon has been awarded a $27.1 million modification to an Air Force contract to provide life of type buys and obsolescence components under three production lots of the Advanced Medium Range Air-to-Air Missile. More than $18 million in fiscal 2016 funds will be assigned at the time of the award. The labor will be conducted in Tucson, Ariz., and should be finished by Jan. 31, 2017.

Raytheon subsidiary  Raytheon Missile Systems has been given a $17.1 million modification to a Missile Defense Agency contract for the continued design and testing of hardware and software for the Standard Missile-3 Block IIA. Raytheon has called the SM-3 Block IIA the “centerpiece of the European missile defense system.”

With the addition of the $17.1 million modification, the total face value of the contract is $1.64 billion. More than $3 million in fiscal 2016 research, development, test, and evaluation funds will be assigned with the award. The labor will be conducted in Tucson, Ariz., and the first phase of the work should be finished on Nov. 30, 2016.


Filed Under: Aerospace + defense

 

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