Huntington Ingalls to repair USS Fitzgerald
The deal, announced by the Department of Defense, is worth $63 million under a cost-plus-fixed-fee contract, which provides cost reimbursement for potential cost overrun fees. Generally, the reimbursement price is negotiated at the inception of the contract.
The Pentagon said the contract will provide for "initial collision ripout phase of an availability which will include a combination of maintenance, modernization, and collision repair of USS Fitzgerald."
The Navy has obligated $31.5 million in fiscal 2018 operations and maintenance funds to Huntington Ingalls at time of award, and the full $63 million of the contract will expire at the end of the current fiscal year.
In November, investigators with the Navy concluded that the Fitzgerald collision with the cargo ship, which claimed the lives of seven U.S. sailors, was "avoidable" and the result of multiple human errors. ■