U.S. Navy Awards $3.3 Billion Multi-Year Shipbuilding Contract to Huntington Ingalls

WASHINGTON – U.S. Senators Thad Cochran (R-Miss.) and Roger Wicker (R-Miss.), along with Representative Steven Palazzo (R-Miss.), today extolled the award of a multi-year procurement contract worth more than $3.3 billion for the construction of five DDG 51 destroyers at Ingalls Shipyard in Pascagoula.

Navy Secretary Ray Mabus informed members of the congressional delegation of the Navy contract to Huntington Ingalls Inc. to produce five of nine DDG 51class ships at its Pascagoula shipyard. More than 56 percent of the work on these ships will be performed in Mississippi. The award is a multi-year, fixed-price incentive contract over fiscal years 2013-2017. It is worth a total of $3,331,476,001.

Each of the Mississippi lawmakers, through their committee assignments have, worked to ensure that Congress provided the authorization and funding needed to continue production of the destroyers.

“This is great news that assures the Pascagoula shipyard’s role in modernizing the Navy fleet. I appreciate the confidence the Navy has in the skill and dedication of men and women who work at the Ingalls shipyard. I share that confidence and will continue to work to ensure that the Navy has the resources it needs to meet our national security needs,” said Cochran, the vice chairman of the Senate Defense Appropriations Subcommittee.

“Mississippi’s shipbuilders are some of the finest in the world,” said Wicker, a senior member of the Senate Armed Services Committee. “I am pleased the U.S. Navy continues to take notice of the great work being done in Pascagoula. This contract will ensure our Navy continues to maintain world-class superiority through the construction of Mississippi-built ‘Arleigh Burke’ Class Destroyers.”

“This award is great news and something I’ve watched closely for some time now. I’ve been committed to multi-year procurement because it ensures the best product for the Navy at the best price for the taxpayer. This is yet another testament to the exceptional work our Mississippi shipbuilders and Ingalls Shipbuilding do in support of our national defense,” stated Palazzo, member of the Seapower and Projection Forces Subcommittee of the House Armed Services Committee.

The Navy on Monday also awarded a separate $2.8 billion contract to the Bath Iron Works, in Bath, Maine, for four DDG 51 destroyers. It is also a multi-year, fixed-price incentive contract.

The contracts are the result of defense authorization and appropriations to meet the Navy’s FY2013 request for nine DDG 51 ships over the next five years. Congress approved that request, and also authorized and funded a tenth DDG 51 destroyer. The contract for tenth vessel has been put on hold due to sequestration budget reductions.


Chris Gallegos
Office of U.S. Senator Thad Cochran
Committee on Agriculture, Nutrition & Forestry – Minority