BAE Systems to Modernize Destroyers Under U.S. Navy Ship Repair Contract

Wednesday, Jul 28, 2010

BAE Systems, Inc., a leading U.S. non-nuclear ship repair, modernization, and conversion company, will modernize 11 Arleigh Burke (DDG 51) class guided missile destroyers under a contract with the U.S. Navy with a potential value of $365 million. This work, along with the recent acquisition of Atlantic Marine, reflects BAE Systems' efforts to support new-era requirements of customers for the readiness and sustainment of equipment and systems.

“This contract, coupled with those for CG 47-class and amphibious ships in Norfolk, San Diego, and Hawaii, reinforces BAE Systems’ robust, trusted partnership with the Navy”

The company received the multi-ship, multi-option drydock contract to service ships home-ported or visiting the Norfolk area.

The company will start executing the contract in August when it begins planning, modernization, maintenance, and repair work on the flagship of the class, the USS Arleigh Burke. The contract consists of an initial one-year award plus four option years. If all of the options are exercised, the total value of the engagement could reach between $350 million and $500 million.

“This contract, coupled with those for CG 47-class and amphibious ships in Norfolk, San Diego, and Hawaii, reinforces BAE Systems’ robust, trusted partnership with the Navy,” said Bill Clifford, president of BAE Systems’ Ship Repair business. “We already will be well into the DDG modernization process on the USS John Paul Jones (DDG 53) in San Diego when the USS Arleigh Burke comes into Norfolk for the same work. This will allow us to leverage our experience in San Diego to provide an enhanced final product to the Navy,” Clifford said.

Having executed 21 Chief of Naval Operations availabilities on DDG 51-class ships since 2006, BAE Systems Norfolk Ship Repair has more than 1.5 million man-hours of experience in DDG maintenance and repair. The company has also made significant investments in facilities and process improvements.

BAE Systems Ship Repair is a leading non-nuclear ship repair, modernization, and conversion company, focusing on drydock and ship repair services for the U.S. Navy, other defense agencies, and commercial customers. It has major operations in Norfolk, San Diego, San Francisco, and Hawaii, and it recently added operations in Mayport and Jacksonville, Florida; Moss Point, Mississippi; and Mobile, Alabama through the acquisition of Atlantic Marine.

Source: Business Wire