BWX Technologies, Inc. (NYSE: BWXT) announced today that the U.S. Naval Nuclear Propulsion Program has awarded subsidiary BWXT Nuclear Operations Group, Inc. a contract with options totaling approximately $806 million for the procurement of long-lead materials required for the manufacture of naval reactor components.
“BWXT remains committed to fulfilling our mission to deliver the highest quality nuclear propulsion components to the U.S. Navy,” said Rex Geveden, BWXT’s President and Chief Executive Officer. “This award enables us to begin critical procurements for long-lead items to meet the rising demand for naval nuclear propulsion systems.”
In February, BWXT announced price agreement with the U.S. Naval Nuclear Propulsion Program on new contracts totaling approximately $2.1 billion, including future-year options. The contract announced today is in addition to that award and provides a significant portion of the material required for fabrication of components for those previously announced Virginia and Columbia-class submarines, and for Ford-class carrier options.
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.
Source: BWX Technologies, Inc.
Date: Oct 17, 2019