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$166M Award for LPD 22/23 Advance Procurement

Maritime Activity Reports, Inc.

December 28, 2004

The U.S. Navy has awarded $166 million in additional advance procurement funding to Northrop Grumman Corporation, providing long-lead materials for San Diego (LPD 22) and Anchorage (LPD 23), the sixth and seventh San Antonio class amphibious transport dock ships. The funds will be used to purchase major equipment such as the ships' main engines, diesel generators and other long-lead material like steel plates and shapes, pipe, cable and other major equipment.

"This funding contract is another modest investment in the most critical and capable element of the nation's future Expeditionary Strike capability," said Philip A. Dur, president, Northrop Grumman Ship Systems, the builder of LPD ships. "The LPD program is critical to our Navy/Marine customer and we are determined to ensure these warships are delivered to the Fleet as efficiently and productively as possible."

This contract modification provides new funding to previously announced advance procurement contracts for both ships. So far, more than $215 million has been provided in advance procurement for LPD 22 and approximately $207 million for LPD 23. Not only will the funding provide equipment and commodities, but also funds for Raytheon Company, the systems integrator, as well as funding for planning, material requisitioning and program management man-hours.

To date, the first five ships awarded in the Navy's anticipated 12-ship LPD 17 program are under contract to Northrop Grumman. San Antonio (LPD 17), New Orleans (LPD 18), Mesa Verde (LPD 19), Green Bay (LPD 20) and New York (LPD 21) are each in various stages of construction at three Northrop Grumman locations: New Orleans, and Pascagoula and Gulfport, Miss. The first three ships have been launched and San Antonio is scheduled for delivery in mid-2005.

The LPD 17 ship class is 208.4 meters (684 feet) long, 31.9 meters (105 feet) wide, and will replace the functions of the LPD 4, LSD 36, LKA 113, and LST 1179 classes of amphibious ships. This new ship class affords the Navy's Expeditionary Strike Group with the technology and flexibility to launch and recover amphibious landing craft such as the Landing Craft Air Cushion (LCAC), operate an array of rotary-wing aircraft, as well as the ability to carry and launch the U.S. Marine Corps' Expeditionary Fighting Vehicle.

Technological and design advances provide enhanced survivability, state-of-the-art command-and-control capability, modernized weapons stations and enhanced ergonomics, which greatly improve the quality of life at sea for the sailors and marines. With these advances, the LPD 17 class is becoming the most sophisticated and survivable amphibious ship ever produced, and as such, offers unparalleled amphibious warfighting capabilities.

Northrop Grumman Ship Systems includes primary operations in Pascagoula and Gulfport, Miss.; and in New Orleans and Tallulah, La., as well as in a network of fleet support offices in the U.S. and Japan. Ship Systems is one of the nation's leading full-service systems companies for the design, engineering, construction and life-cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies.

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