BIW loses out on contract for Navy DD-X program Maine still expected to share portion of shipbuilding

WASHINGTON – Maine’s Bath Iron Works lost out Monday in a high stakes battle with Ingalls Shipbuilding of Pascagoula, Miss., for a three-year $2.9 billion contract as the lead designer of a new line of Navy warships.

BIW still is expected to share a portion of the shipbuilding as the DD-X program moves forward in the Navy’s major push to develop a new generation of high-tech warships.

The DD-X program will include a line of cruisers, small destroyers and a new ship for navigating shallow waters. The stealthy and versatile fleet is expected to use smaller crews and carry the newest systems of computers, communications and weapons available. The fleet also will share common design elements, including similar shapes and materials for the ship’s hull.

“DD-X and its associated transformational technologies will be at the core of U.S. Navy capabilities and missions for the 21st Century,” Adm. Vern Clark, the chief of naval operations, said Monday. “These great ships and other members of the family of surface combatants will transform the Navy fleet, multiply our combat effectiveness, and play a crucial role in dominating the future battle space.”

Military planners view the new line of warships as helping the Navy and Marine Corps to coordinate more closely in battles that involve both sea and land power. Hopes are that the DD-X will also serve a role in the Pentagon’s planned missile defense shield.

Maine lawmakers expressed disappointment that Bath will not be the lead designer, but noted that the shipyard will play a strong role in the first design phase and is still in the running for winning the contract as the lead builder when the DD-X goes into production in 2005.

“I am deeply disappointed and concerned by the Navy’s decision. … Bath Iron Works and the people of Maine deserve to understand how the Navy reached this decision, and I will assure that the Navy provides an explanation,” said U.S. Sen. Olympia Snowe.

“Navy officials said it was a difficult decision,” said Sen. Susan Collins, a member of the Senate Armed Services Committee. “While it is not good news, it’s not terrible either, because Bath will be doing significant work on DD-X and is still well positioned to be the lead on construction.”

Rep. Tom Allen, agreed. “When I was informed, I got the sense that there were two very good proposals for the program,” he said. “There’s still a strong chance Bath will be the lead builder.”

Though disappointed, Rep. John Baldacci, said he was “encouraged that development of the DD-X is moving forward. … Development of this vessel is important for our national security. It will also provide beneficial work for the men and women of Bath Iron Works.”

Northrup Grumman had been in competition with General Dynamics, parent company of BIW, for the project.

Northrop Grumman leads a team of contractors called the “Gold Team” that includes Raytheon Systems Co. Gold Team’s winning proposal also incorporated “Blue Team” member BIW as a subcontractor to perform DD-X design and test activities, which guarantees BIW a role in producing the DD-X design. General Dynamic’s main partner was Lockheed Martin.

According to the Navy, 38 percent of the total design work will be shared between Ingalls and Bath.

How many jobs at Bath are at stake is not yet known, said Kendell Pease, spokesman for General Dynamics.

“We didn’t even count jobs,” he said on Monday, adding that he is uncertain how 38 percent of the work will be shared between the two shipyards, although he expected to hear more details later this week.

Thirteen other contractors around the country also will take part in the design tasks.

The Navy has for years had a policy of splitting shipbuilding between shipyards to protect jobs and to prevent the disruptions that would happen if only one facility was picked and then crippled by a strike or some other problem.