Todd Pacific Shipyards to Overhaul Carriers

Friday, April 02, 2004
Todd Pacific Shipyards Corporation has been awarded a five-year contract with the United States Navy to provide long-term overhaul and maintenance to the NIMITZ CLASS aircraft carriers (CVN) homeported in Puget Sound. The contract consists of multiple contract options for planned incremental availabilities (PIA's), docking planned incremental availabilities (DPIA's) and continuous maintenance and upkeep for the USS LINCOLN (CVN-72), USS STENNIS (CVN-74), USS NIMITZ (CVN-68) and USS VINSON (CVN-70) when they are in Puget Sound. The work to be performed includes all types of non-nuclear ship repair, alteration and maintenance. All on-board work will be accomplished by the Todd Pacific workforce at Puget Sound Naval Shipyard in Bremerton, Washington, or Naval Station Everett. The work will be performed under a cost-plus-award-fee-with-performance-incentive-fee contract and represents the second contract for aircraft carrier maintenance awarded to Todd Pacific. The first such contract, recently expired, was awarded in 1999. Todd Pacific will be supported in this effort by various regional suppliers and subcontractors. Significant support will be provided by the Company's two teaming partners for this contract, Pacific Ship Repair and Fabrication ("PacShip") and AMSEC LLC ("AMSEC"). The first significant availability is a DPIA on the USS STENNIS currently scheduled to begin in February 2005. In the interim, Todd Pacific will continue to provide maintenance and upkeep on the aircraft carriers in Puget Sound as directed by the customer. The estimated total value of all options, if exercised by the Navy, is approximately $133 million. There is no assurance that all options will be exercised, in whole or in part.

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