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March 30, 2016

Senators Collins & King Announce Funding for DDG-51 to be built at BIW and $2.2 Billion in Program Savings for the U.S. Navy

WASHINGTON, D.C. – U.S. Senators Susan Collins and Angus King announced today that the U.S. Navy has provided $644 million in funding for the design and construction of an Arleigh Burke class destroyer (DDG-51) – a ship previously awarded to Bath Iron Works (BIW) as part of a multiyear procurement (MYP) contract to build 10 ships from 2013-2017.   In fiscal year (FY) 2012, Senator Collins led the fight for a DDG-51 program MYP strategy, which she argued could reap significant savings for the taxpayer. In addition to cost savings for the taxpayer, the MYP contract has allowed BIW and other shipbuilders and equipment manufacturers to plan future workloads more efficiently. 

“We have long encouraged the Navy to pursue multiyear procurement contracts for DDG-51 destroyers. These contracts are among the most effective tools in helping to keep costs low and our Navy strong,” said Senators Collins and King.  “We are pleased to announce that the projected savings from this procurement strategy is an impressive $2.2 billion.”

The MYP strategy also provides much needed security and stability for BIW’s shipyard workers.  “This announcement is welcome news for the hardworking men and women of Bath Iron Works,” Senators Collins and King continued. “The dedicated workforce of BIW delivers the highest quality ships for our nation’s sailors making these workers an invaluable asset to preserving our national security.”

This past year, Senators Collins and King secured $1 billion in the FY 2016 omnibus appropriations bill signed into law last December to provide funding toward the construction of an additional DDG-51, adding to those previously funded in the multiyear contract. The Navy listed the remaining $433 million needed to fully procure this additional ship as the number two priority on its FY 2017 Unfunded Priorities List.

“With countless threats across the globe, the value and importance of our naval assets to security and stability have never been greater. We will continue to work closely with the Administration to preserve the strength and combat capabilities of our Navy.”

Senator Collins is a senior member of the Senate Defense Appropriations Committee, and Senator King is a member of the Senate Armed Services Committee.

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