WASHINGTON — The U.S. Navy and Huntington Ingalls Industries Newport News Shipbuilding Division announced Thursday a final contract to block buy two Ford-class aircraft carriers, and Virginia's senators are pleased.
The company announced that it received a contract modification valued at $15.2 billion for the detail design and construction of the Gerald R. Ford-class aircraft carriers Enterprise (CVN 80) and CVN 81, which has not yet been named.
Virginia Senators Tim Kaine and Mark Warner made the following statement about the final contract:
“A big congratulations is due to the Navy and Huntington Ingalls Industries for finalizing a deal that will save 4 billion in taxpayer dollars and help keep the country safe. Virginia’s shipbuilders make the finest carriers in the world, and we have long pushed the Navy to make this smart investment by block buying the newest class of ships. We are also glad that this move will help provide stability for the Hampton Roads defense community, ensuring that the shipyards can maintain the workforce they will need to help us reach the Navy’s goal of a 355-ship fleet.”
The Senators have long supported block buying aircraft carriers.
Representatives Bobby Scott (VA-03), Rob Wittman (VA-01), A. Donald McEachin (VA-04) and Elaine Luria made the following statement about the block buy:
“Today’s announcement that the Secretary of the Navy has signed the contract for a two-carrier buy is great news for the dedicated shipbuilders in Hampton Roads and the small business community across Virginia and the nation that support the construction of our carrier fleet. Carriers are deployed across the globe and are critical to our defense and national security. The dual buy finalized by the Navy today will save taxpayers’ money and bring stability and certainty to our shipbuilding industrial base. This will secure thousands of jobs for Virginians in the coming years.”
The Navy’s decision to partner with HII to create the best acquisition approach will save more than $4 billion.
Hampton Roads Military and Federal Facilities Alliance Executive Director Craig Quigley, a retired Navy rear admiral, said block buying is a smart move.
"The American taxpayers will save money," he said. "The Navy gets a very efficient shipbuilding process. the builder is able to order components at a very competitive rate because those suppliers know they're doing two of them instead of one, and it's good for the workforces as well. So, there is nothing but goodness about ordering two carriers at a time."
Huntington Ingalls Chief Executive Mike Petters has said multi-ship purchases are the best way to achieve cost savings.
The construction of Enterprise, which started in 2017, and the CVN 81 are scheduled to be delivered in 2028 and 2031, respectively.