Navy Signs MOU To Transfer Ship Construction

Monday, June 17, 2002
The Navy announced today that it is signing a Memorandum Of Understanding (MOU) with General Dynamics (GD), and Northrop Grumman Ship Systems (NGSS) to transfer ship construction between the two corporations' shipyards. The MOU outlines the terms and conditions for transferring the construction of four LPD 17-Class amphibious transport dock ships from Bath Iron Works (BIW), a GD shipyard, to NGSS owned-Ingalls and Avondale shipyards in exchange for construction of four additional DDG 51-Class destroyers at Bath Iron Works. Under this plan, DDG 102, which was to have been built at Ingalls, will be transferred to Bath Iron Works. LPD 19, in the initial stages of construction at Bath Iron Works, will be transferred to Northrop Grumman.

As a result of this agreement, the Navy is expected to realize significant net cost savings on these programs. The arrangement is anticipated to provide for increased LPD 17 program stability and cost savings by centralizing production at one shipbuilder, NGSS and improved workload stability at General Dynamics Bath Iron Works, which will build additional DDG's in its new, more efficient, land-level facility. Speaking about the agreement, Assistant Secretary of the Navy for Research, Development and Acquisition, John J. Young, Jr. said, "The Navy and the shipbuilders have taken a bold step today. This shipbuilding transfer agreement will save the taxpayers money over the life of these two programs by dramatically reducing the cost and schedule risk in the LPD 17 program. The new fiscal year 02-05 DDG multi-year contract pricing and conditions were also negotiated in conjunction with the swap agreement. The signing of this MOU and the new DDG multi-year together stabilize the workload at three shipyards-Ingalls, Bath, and Avondale and provide a solid plan for almost $20 billion of Navy shipbuilding. This agreement is a win-win for both shipbuilders and the Navy."

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Norwegian Car Carriers to Buy Two from Hyundai Samho

Oslo-listed Norwegian Car Carriers (NOCC) has signed a contract with Hyundai Samho Heavy Industries for the construction of two 6500 ceu Pure Car Truck Carrier (OCTCs).

Boatbuilding in China

While much of the focus on coverage of the Chinese shipbuilding industry is on big shipbuilding, Maritime Reporter switches gears this month to explore activities in select boatbuilding sectors.

HMS Prince of Wales Bridge Sets Sail

The bridge section of the second Queen Elizabeth Class aircraft carrier set sail today from Glasgow on its first sea voyage to Rosyth.   Upper Block 07 is where

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Salvage Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3139 sec (3 req/sec)