NORFOLK, Va. – Two shipbuilding companies will be using recently granted military contracts for work in Norfolk.
The contracts were awarded by the federal government on December 22 to General Dynamics National Steel and Shipbuilding Company (NASSCO) and BAE Systems, and are worth approximately 124,733,433 million dollars combined.
NASSCO will receive a 83,079,259 firm-fixed-price contract that will be used towards the execution of the USS Mesa Verda, and BAE Systems will use its firm-fixed contract worth 41,654,174 toward the execution of the USS Oscar Austin. These “executions” could be fixes, repairs, modifications, etc., that money will be spent on.
A Department of Defense press release says that the contracted work for both companies will be done by the 2019 fiscal year. NASSCO is expected to finish its contracted work by May 2019, while BAE Systems will finish its contracted work by February 2019.
All work that was granted for these contracts will be done in Norfolk, using facilities and human resources (labor) in the area.
In all, eight contracts were awarded to companies that will work in updating and modifying U.S. Navy property and equipment.
BAE Systems also received a separate contract for building operations it has going on in San Diego, California.
Both companies applied for these contracts through the Federal Business Opportunities website.
Both companies have options in its contracts that would allow them to see more money. Options if exercised could total NASSCO’s contract to 98,259,279 and BAE Systems’ contract to 117,186,557.