NEWPORT NEWS, Va., Sept. 30, 2011 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries, Inc. (NYSE:HII) announced today that its Newport News Shipbuilding (NNS) division has been awarded a contract by Bechtel Marine Propulsion Corp. (BMPC) to provide maintenance services at the Kenneth A. Kesselring Site in West Milton, N.Y., a research and development facility that supports the U.S. Navy's Nuclear Propulsion Program. NNS will serve as an industrial subcontractor, providing maintenance services on the two nuclear reactor prototypes at the Kesselring site.
"Newport News Shipbuilding's skill sets, experience and commitment align well with BMPC's need for the highest-quality maintenance services for its Kesselring site," said Kent Williams, NNS' director of nuclear overhaul engineering and Kesselring site director. "We are eager to partner with BMPC to provide maintenance assistance, drive site improvement and support the company's vision going forward."
NNS successfully competed against the incumbent for the contract. The cost-plus-fixed-fee, level-of-effort contract contains a five-year base period valued at $195 million with a five-year option valued at $395 million. A NNS management team will relocate to the Kesselring site in October to begin the transition period. Performance of prototype maintenance services is scheduled to begin in January 2012.
Statements in this release, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to obtain new contracts, estimate our costs and perform effectively; risks related to our spin-off from Northrop Grumman (including our increased costs and leverage); our ability to realize the expected benefits from consolidation of our Gulf Coast facilities; natural disasters; adverse economic conditions in the United States and globally; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligations to update any forward-looking statements.
About Huntington Ingalls
Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a century, HII has built more ships in more ship classes than any other U.S. naval shipbuilder. Employing more than 37,000 in Virginia, Mississippi, Louisiana and California, its primary business divisions are Newport News Shipbuilding and Ingalls Shipbuilding. For more information, visit:
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