Navy awards BWXT $806M contract

Navy awards BWXT $806M contract

by Richard Foster  |  Virginia Business

The U.S. Naval Nuclear Propulsion Program has awarded a contract with options totaling about $806 million to a subsidiary of Lynchburg-based BWX Technologies Inc., the company announced Thursday.

Related to a previous $2.1 billion contract, the newly awarded contract to BWXT Nuclear Operations Group Inc. will fund the procurement of long-lead materials needed for the manufacture of naval nuclear reactor components that will be used in Virginia–class submarines and next-generation Columbia-class submarines and Ford-class naval carriers. BWXT is a federal defense contractor specialzing in the supply of nuclear components and fuel.

“BWXT remains committed to fulfilling our mission to deliver the highest quality nuclear propulsion components to the U.S. Navy,” said Rex Geveden, BWXT president and CEO, in a statement.

In February, BWXT announced an agreement with the U.S. Naval Nuclear Propulsion Program on new contracts totaling approximately $2.1 billion, including future-year options. The contract announced Thursday is in addition to that award, The base material procurement contract for fiscal year 2019 is valued at $75 million and is the first of seven annual options available through 2025. The remaining six options have an average annual value of about $122 million, contingent on U.S. congressional appropriations