PASCAGOULA, Miss., Sept. 19 (UPI) -- The U.S. Navy has exercised a contract option with Ingalls Shipbuilding for continued engineering support for Ticonderoga class Aegis guided missile cruisers.
The value of the cost-plus-award-fee contract option is $83.3 million.
"This award builds on the U.S. Navy's confidence in the versatility we have as a shipbuilding company in not only building quality warships but also in providing life-cycle and modernization support," said Bob Merchent, Ingalls' vice president, surface combatants and U.S. Coast Guard programs.
"This contract validates Ingalls Shipbuilding's long-standing reputation for excellence in fleet sustainment and in building CG 47-class ships. Obviously it takes the efficiency and skill of our shipbuilders to accomplish these efforts and I'm confident they will demonstrate quality performance on this important project for these surface combatants."
Ingalls Shipbuilding is a division of Huntington Ingalls Industries, which designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and which offers after-market services. It built 19 Ticonderoga class ships from 1982-94.
The option exercised for engineering, modernization and support services is the first of five options. If all five were exercised, the total value of the support contract previously given would reach $468.2 million.