Coast Guard Awards Deepwater Contract Under New Management

Thursday, July 26, 2007
According to reports, the Coast Guard has awarded the first contract under its new management structure for the Deepwater program. The Coast Guard said in June that it would assume overall management duties for the troubled project, which includes a wide range of ships, aircraft and other systems. Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC), the program's prime contractors through their Integrated Coast Guard Systems joint venture, were stripped of their lead systems integrator role.

But the two contractors remain on deck to continue program work, through an extension of their umbrella contract. Now the Northrop-Lockheed team has finalized details on a $53m contract for a range of systems engineering and design work. The new contract is the first task order under the new long-term Integrated Coast Guard Systems contract. The 43-month deal was signed in June, but at the time there were no details on what kind of money might accompany the new agreement. Source: Dow Jones

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