General Dynamics agrees to fixed-price ship deal

General Dynamics Corp has agreed to build a second DDG-1000 U.S. Navy destroyer on fixed price, incentive terms, which should lead to cost savings from the first ship in the class, the Pentagon's chief arms buyer said on Friday.

John Young, defense undersecretary for acquisition, told reporters he also hoped to build the next few DDG-51 ships, an earlier model destroyer, on the fixed-price terms favored by Congress and the Obama administration.

Young described as "remarkable" a deal to build all Navy's newest multibillion-dollar guided-missile destroyers at General Dynamics's Bath Iron Works shipyard in Maine, while Northrop Grumman Corp Corp would get contracts to build two DDG-51 destroyers at its Pascagoula shipyard in Mississippi.

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