Join our brand new verified AMN Telegram channel and get important news uncensored!

In one day, Navy awards 2 defense contracts worth up to $907 million to nation’s largest shipbuilder

The aircraft carrier Pre-Commissioning Unit (PCU) John F. Kennedy (CVN 79) reaches another construction milestone, Oct. 29, 2019, as its dry dock area is flooded three months ahead of its slated production schedule leading up to the christening of the second Ford-class aircraft carrier, scheduled for Dec. 7, 2019. (U.S. Navy photo by Mass Communication Specialist 3rd Class Adam Ferrero/Released)
January 12, 2020

The Pentagon made its usual mark on the Hampton Roads economy last month, awarding contracts ranging from construction projects to office chairs, but nothing topped Huntington Ingalls Industries’ one-day performance on Dec. 20.

That’s when the nation’s largest military shipbuilder received two Navy contracts potentially worth $907 million. One benefits HII’s Newport News shipyard, and the other boosts Ingalls Shipbuilding in Mississippi.

The one-day total is by no means a record-setter. Last year, the company signed a $15.2 billion deal on two aircraft carriers and shared in a $22.2 billion contract for a block purchase of Virginia Class submarines.

Still, it supports the company’s long-term work flow. Both contracts fund work on entire classes of ships out to 2024.

At Newport News, the contract is worth up to $454.1 million and will cover engineering, design, research/development and other work for nuclear-powered submarines. The yard builds Virginia Class attack subs and has begun work on a new fleet of ballistic missile submarines, both in partnership with General Dynamics Electric Boat of Groton, Conn.

The contract is initially funded at $5.3 million, but would rise to $454.1 million as options are exercised through September 2024.

At Ingalls Shipbuilding in Mississippi, a contract worth up to $453 million will cover work on the Ticonderoga Class and Spruance Class destroyer programs. It includes maintenance, engineering and materials. The contract runs to December 2024.

Ingalls builds guided-missile destroyers and amphibious warships, a number of which are based in Hampton Roads. It also builds large Coast Guard cutters.

The Defense Department announced the contracts as a part of its routine release of all deals worth $7 million or more. Additional details on these contracts came from HII news releases.

The company snagged two smaller deals, too. HII-Newport News received $11.5 million under an existing contract to continue work on the aircraft carrier Gerald R. Ford. HII-Ingalls will get $8.3 million for post-delivery work on the USS Tripoli, an amphibious assault ship.

Here are other awards of note in December, according to the Defense Department:

Fincantieri Marine Systems North America, Chesapeake: Exercising an $18 million option under an existing Navy contract for work on diesel engines and generators on mine countermeasure ships.

Atlantic Diving Supply, Virginia Beach: $7.4 million for medical and surgical supplies, with the contract awarded by the Defense Logistics Agency (DLA).

Etolin Strait Partners LLC, Norfolk: $30 million for minor construction projects mostly within the Naval Facilities Engineering Command in the Washington, D.C., area.

Sysco Hampton Roads, Suffolk: $90.7 million DLA contract for perishable and semi-perishable subsistence supplies.

Kelvin International Corp., Newport News: $19.1 million for development, testing and support services for the production and delivery of 102 Cryogenic Service Systems. These are 2,000-gallon metal tanks that store and supply oxygen and nitrogen for support equipment and aircraft systems. The contract is through the Naval Air Warfare Center Aircraft Division

General Dynamics NASSCO-Norfolk: $96.9 million for maintenance, modernization and repair of the USS Mason, a guided-missile destroyer based in Norfolk.

Govsolutions Inc. and Workplace Solutions Inc.: These two Virginia Beach companies were among 10 firms named in a multiple-award $80 million Air Force contract for office chairs.

Ameresco Select Inc., Framingham, Massachusetts: $402.8 million for energy conservation measures at Norfolk Naval Shipyard, Portsmouth. It includes work on steam distribution, energy security upgrades, replacement of transformers and water treatment plant improvements. Work is expected to last through January 2043.

Finally, seven companies were named in a multiple-award contract worth $43.1 million that covers work on Navy watercraft. Five of the seven are from Hampton Roads: Anchor Innovation and Q.E.D. Systems, both of Virginia Beach; Auxiliary Systems and Colonna’s Shipyard, both of Norfolk, and Fairlead Boatworks, Newport News.


© 2020 the Daily Press