Navy Awards Bath Iron Works $19.5 Million to Support Zumwalt Destroyers

Bath Iron Works has received a $19.5 million contract modification from the U.S. Navy to continue engineering and technical support for the Zumwalt-class destroyers, keeping the specialized work concentrated almost entirely at the company's Washington Street shipyard through March 2027.

Naval Sea Systems Command in Washington, D.C., issued the contract, which allows Bath Iron Works to continue serving as the Planning Yard for the three DDG 1000-class ships. That role requires the company to maintain the ships' technical design records, support upgrades, and troubleshoot engineering problems that emerge during active service. The Navy has determined that outside engineering firms cannot easily assume those duties: the Zumwalt destroyers incorporate some of the most advanced technologies ever installed on a U.S. surface combatant, and maintaining them demands both specialized expertise and access to the original design data that Bath Iron Works holds.

The contract draws from two separate Navy budget accounts. Fiscal 2025 "Other Procurement, Navy" funds of $9,895,750 were obligated at award, with an additional $1,875,210 in Fiscal 2026 operation and maintenance funds also applied. Ninety-nine percent of the contracted work will be performed in Bath, with roughly one percent at other locations.

Bath Iron Works built all three Zumwalt-class ships, the 610-foot stealth destroyers whose angular hull form is engineered to scatter radar returns. The class was originally planned at 32 vessels, but cost overruns and changing weapon-system priorities reduced the program to three hulls. The last of them, the USS Lyndon B. Johnson, left Bath in 2022.

BIW President Charles Krugh called the award a vote of confidence in the yard's work. "We appreciate the confidence of our U.S. Navy customer that this contract renewal represents," Krugh said. "The DDG 1000 class are remarkably advanced platforms and we are committed to ensuring their maintenance and modernization so they can contribute to the U.S. fleet's capabilities for years to come."

Senator Susan Collins praised the shipyard workforce directly. "This award is a testament to the highly skilled and hard-working men and women of BIW and once again shows that 'Bath Built is Best Built,'" Collins said in a press release. "As global threats continue to grow, investing in a strong and capable Navy is more important than ever." Representative Jared Golden, a member of the House Armed Services Committee, called the contract "great news for Mainers."

Beyond the Zumwalt program, Bath Iron Works also manages post-delivery maintenance and modernization for the Navy's DDG 51 Arleigh Burke-class destroyers. The company currently supports 76 surface combatants across the fleet and employs 6,600 workers as a subsidiary of General Dynamics. The contract also includes options that, if fully exercised and funded by the Navy, could bring the total agreement value to $343,717,651 and extend performance through 2029.