Navy Awards Contract for Construction of Two Carriers

[nitpicker]

https://www.navy.mil/submit/display.asp?story_id=108482

Navy Awards Contract for Construction of Two Carriers

Story Number: NNS190131-14Release Date: 1/31/2019 5:34:00 PM

From the Office of the Navy Chief of Information

WASHINGTON (NNS) -- The Navy has awarded a contract for the construction of CVN 80 and CVN 81 to Huntington Ingalls Industries-Newport News Shipbuilding (HII-NNS). This contract award delivers significant savings to the government – exceeding $4 billion when compared to the Navy’s original cost estimates to procure these CVNs separately.
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In addition to these savings, the contract includes ship integration costs of several modifications required to meet emerging threats including the F-35C Lightning II, MK 38 gun system and MQ-25 Stingray Unmanned Aircraft System. These modifications increase the lethality of the FORD Class, and represent an additional $100 million in savings that is in addition to the $4 billion, since these new capabilities were not included in the original single-CVN Navy estimate. Plus, these new savings associated with new capabilities increases to $200 million if installed in the ship before delivery, in comparison to installing after ship delivery.

This Fixed Price Incentive (Firm Target) (FPIF) contract limits the Navy’s liability and incentivizes the shipyard’s best performance. The contract guarantees a single technical baseline for both ships, which allows the shipyard to re-use engineering rollover products, minimize changes between the two ships and leverage economic order quantities for equipment and material procurement.

ENTERPRISE (CVN 80) is the third ship of the FORD-Class and the numerical replacement for USS EISENHOWER (CVN 69). CVN 81, not yet named, will be the fourth ship of the class and will be the numerical replacement for USS CARL VINSON (CVN 70). CVN 80 began advanced planning and initial long lead time material procurement in May 2016.