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BAE Systems lands $202M in Navy ship repair contracts

Falls Church-based BAE Systems Inc.’s Norfolk Ship Repair unit has received two U.S. Navy contracts worth a combined $202 million for maintenance, modernization and repair of two vessels.

The U.S. arm of British defense giant BAE Systems announced the awards Monday. Its shipyard employees and their subcontractors will begin working on the guided missile destroyer USS Laboon (DDG 58) and the amphibious assault ship USS Wasp (LHD 1) in February and March 2025, respectively.

“The award of these two contracts will provide extensive work for our Norfolk shipyard team,” David M. Thomas Jr., vice president and general manager of BAE Systems Norfolk Ship Repair, said in a statement. “We look forward to using our proven experience on recent LHD and DDG work to return these ships to the fleet in excellent condition.”

According to the Department of Defense’s mid-October announcement of the awards, the Norfolk Ship Repair unit received a $114.8 million firm-fixed-price contract for work on the USS Laboon, commissioned in 1995. The contract also includes options that, if exercised, would bring its total value to $117.9 million.

BAE Systems will dry-dock the ship to perform underwater hull maintenance and repair the ship’s main propulsion system, preserve internal ballast and fuel tanks and the external superstructure, and rehabilitate crew berthing and dining compartments.

The $87.58 million firm-fixed-price contract for work on the USS Wasp includes options that, if exercised, would bring its total value to more than $104.69 million. The current USS Wasp is the 10th ship to carry the name and was commissioned in 1989. Work on both ships is expected to be completed by February 2026.

On the Wasp, BAE Systems will perform mechanical work, inspect and repair interior hull structures and refurbish habitability spaces for the crew and Marine troops. The company’s shipyard previously worked aboard the Wasp from February 2021 to April 2023.

The contractor’s Norfolk shipyard has about 900 employees.

Earlier this year, the Norfolk team began working aboard the dock landing ship USS Carter Hall, and the shipyard is currently finishing repair periods aboard USS Kearsarge, a Wasp-class ship, and destroyer USS Nitze.

BAE Systems has about 41,000 employees worldwide and reported $13.6 billion in 2023 revenue. In addition to its Norfolk shipyard, the company has one each in Florida and California.

Lyon Shipyard to expand, adding 134 jobs

Lyon Shipyard, a 95-year-old family-owned ship repair facility in Norfolk, will spend $8.5 million to expand its operations and add an estimated 134 jobs, Gov. Glenn Youngkin announced Wednesday.

The shipyard plans to increase its capacity to work on commercial ships and vessels that will work on offshore wind farm operations. Virginia competed with Maryland and North Carolina for the project.

“Lyon Shipyard has been a leader in marine repair and industrial services in Norfolk for nearly a century, and its new investment will allow the company to service vessels integral to Virginia’s growing offshore wind industry,” Youngkin said in a statement. “We thank Lyon Shipyard for its long-term partnership with the commonwealth and advancing Virginia’s position as a leading state in this emerging sector on the East Coast.”

Established in 1928, Lyon has two facilities in Norfolk located on more than 30 acres along the eastern branch of the Elizabeth River. The company provides marine electronics repair, barge repair and pier side repairs and hauls vessels out of the water for underwater repairs to equipment including propellers, tail shafts and rudders. The company’s commercial customers include tug and barge operators, dredging and marine construction contractors, ferry and cruise ship operators, research vessels and commercial fishing companies. Its government customers include the Navy, Army, Coast Guard, Military Sealift Command and the Maritime Administration.

The company announced a $24.4 million expansion in 2021, during which it added 119 jobs, and it has received several Navy contracts this year, according to Pentagon records, including one for repair, alterations and maintenance for vessels that is valued up to $70 million through September 2027 if all options are exercised. The region is also home to Dominion Energy’s $9.8 billion Coastal Virginia Offshore Wind project.

“We want to be the change so many other companies just talk about — Lyon Shipyard wants to lead the charge and help transform the socioeconomical landscape for the city of Norfolk and its residents,” Nikole Dunkley, Lyon’s vice president of human resources, said in a statement.

The Virginia Economic Development Partnership worked with Norfolk and the Hampton Roads Alliance to secure the project for Virginia and will support Lyon Shipyard’s job creation through the Virginia Jobs Investment Program, which provides consulting and funding to companies creating jobs to support employee recruitment and training activities.