≈$6.59B Navy DEFINITIVE CONTRACT N0002423C2305

About $6.59B to Bath Iron Works — destroyers for fiscal years 2023 through 2027 contracted together, over a period running ten and a half years

Department of the Navy 2023-08-01 〜 2034-02-28

A definitive contract administered by the Navy, described as construction of destroyers for fiscal years 2023 through 2027. Rather than ordering year by year, several fiscal years are placed together. Obligations are about $6,589.84 million over a period from 2023-08-01 to 2034-02-28, ten and a half years.

Contract key facts

  • RecipientGeneral Dynamics
  • Contract value$6,589,838,761 (≈$6.59B)
  • BranchNavy
  • Awarding agencyDepartment of Defense
  • Awarding sub-agencyDepartment of the Navy
  • Award typeDEFINITIVE CONTRACT
  • Period of performance2023-08-01 〜 2034-02-28
  • Contract ID (PIID)N0002423C2305

Contract scope (original)

CONSTRUCTION OF DDG 51 SHIPS FY23-27

Key points

  • Construction of destroyers for fiscal years 2023 through 2027 is placed into a single contract.
  • Ordering together lets the builder plan production while narrowing the room to change course midway.
  • The period runs from 2023-08-01 to 2034-02-28, ten and a half years, ending some years beyond the last fiscal year covered.
  • Among the 207 Department of Defense contracts this site holds as of 2026-09-01, several shipbuilders appear, differing by ship type.
  • Obligations are about $6,589.84 million while outlays are recorded as zero, so progress is hard to gauge from an outlay ratio.
  • Bundling five fiscal years eases planning and lowers unit cost while narrowing the room to change course midway.

1Several fiscal years placed in one contract

The description covers construction for fiscal years 2023 through 2027. Rather than ordering year by year, five fiscal years are placed into a single contract.

Ordering together lets the builder plan production and secure material and people on a longer horizon. It also narrows the room to change course midway. The period runs from 2023-08-01 to 2034-02-28, ten and a half years, with the end set some years beyond the last fiscal year covered.

2Several shipbuilders sit side by side

Among the 207 Department of Defense contracts this site holds as of 2026-09-01, several shipbuilders appear. Yards differ by ship type, so destroyers, amphibious ships and submarines show up as records of different companies.

Grouped as shipbuilding they form one industry; in the record they are separate recipients. Aggregating by industry means judging the sector from recipient names. Those 207 records carry 50 distinct names and 74 identifiers.

3Outlays remain at zero

Obligations are about $6,589.84 million while outlays are recorded as zero. It began in August 2023, three years ago.

Of the 207 Department of Defense contracts this site holds as of 2026-09-01, outlays are zero on 115, and 62 of those are already past their end date. With ended-and-zero so common, the outlay value reads as reflecting the reporting arrangement rather than the state of the contract, and progress is hard to gauge from an outlay ratio.

4What bundling the years changes

The description says construction of ships for fiscal years 2023 through 2027. Rather than ordering year by year, five years are committed in one contract.

What bundling five years gainsWhat bundling costs
The builder can plan productionLess room to change the plan midway
Material and staffing run against a long horizonHarder to adjust if demand shifts
Bulk ordering holds down unit costBudget is committed years ahead
Skilled labour and the supply chain are sustainedA misjudged forecast also stays with you

The period runs from 1 August 2023 to 28 February 2034, ten and a half years, with the end set several years past the last fiscal year covered. Obligations are about $6,589.84 million while outlays stand at zero. Of the same 207, outlays are zero on 115 and 62 of those are past their end date, so the outlay value is more accurately read as reflecting the reporting arrangement.

Why it matters

Multi-year ordering bears directly on the production planning and employment of the builder. In shipbuilding, where sequences are long and skilled people hard to hold, continuity of orders is itself tied to keeping capability. Read from outside, allow for a contract period running beyond the fiscal years it covers.

FAQ

Why place several fiscal years together?
The record gives no reason. It lets the builder plan production on a longer horizon while narrowing the room to change course.
Why does the period run ten and a half years?
Construction of the ships ordered in the final year continues after it, so the end is set some years beyond the fiscal years covered.
Why are outlays zero?
Of the 207 records this site holds as of 2026-09-01, 115 show zero outlays and 62 of those are past their end date, which reads as an artefact of reporting.

Sources (primary)

This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.

#Defense#Contracts#Navy#Shipbuilding#Multi-year contracts
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