BAE Systems to cease Pearl Harbor ship repair operations
- Industry news
BAE Systems, a British defense, security and aerospace company, has decided to close its ship repair business located at the Pearl Harbor Naval Shipyard in Pearl Harbor, Hawaii.
The closure of the BAE Systems Hawaii Shipyard (HSY) site is expected to be completed during the first quarter of 2021.
It will affect all 290 employees currently employed at the location, BAE systems informed in a Notice Pursuant to Worker Adjustment and Retraining Notification (WARN) Act filed with the State of Hawaii in October 2019.
Specifically, the move follows the US Navy’s decision to change its contracting strategy from a Multi Ship Multi Option (MSMO) based contract to a Multiple Award Contract Multi Order (MAC-IDIQ) based contract.
“As a result of decreasing work, BAE Systems has decided to cease its ship repair operations in Hawaii following the completion of USS Hopper (DDG 70) availability, which will complete our work under our last Multi-Ship, Multi-Option contract at Pearl Harbor,” a spokesperson for BAE Systems Ship Repair, told Naval Today.
As explained, the decision is related to the declining workload for the shipyard in advance of the changing business environment for navy ship repair work at Pearl Harbor.
“We are committed to completing our remaining work in Hawaii and will continue to support the US Navy’s ship repair requirements from our Norfolk, Jacksonville and San Diego shipyards,” the spokesperson added.
Naval Today Staff