Lockheed, Navy Could Reach Deal on Ships

Monday, April 09, 2007
U.S. Navy and Lockheed Martin could reach a preliminary agreement as early as next week on how much the defense contractor will be paid for a pair of next-generation combat ships according to the AP. Secretary of the Navy Donald Winter has indicated he plans to strike a deal with Bethesda, Md.-based Lockheed Martin Corp. ahead of an April 12 deadline after a stop-work order was placed on one of its ships due to cost overruns, Capt. Beci Brenton, spokeswoman for Winter's office, said on Friday. Senior Navy officials in January placed a 90-day stop-work order on the second of two ships Lockheed is building as part of the Littoral Combat Ship (LCS) program so they could conduct a cost review. The Navy awarded contracts for four LCS ships, initially estimated to cost $270m each, two to Lockheed and two to Falls Church, Va.-based General Dynamics Corp.

Work has continued on Lockheed's first ship — the Navy says it is almost three-quarters completed — but its cost has already soared to roughly $350 million. The company has said cost overruns were due to revised Navy requirements and material delays from subcontractors. Last month, Winter said he would allow Lockheed to start work on the second ship at its Wisconsin shipyard — which was expected to begin last month — if the company agreed by mid-April to switch to a fixed-price contract. Since then, the company has been in negotiations with the Navy to restructure its contract for both ships. The first ship was scheduled to be delivered to the Navy this summer. A new delivery deadline will be set for both ships as part of the negotiations, according to Lockheed.

General Dynamics' shipbuilding unit in Mobile, Ala., is on track to deliver on schedule its first ship, which is roughly 40 percent complete, by spring 2008, said spokesman Kendell Pease. The company has been put on close watch by the Navy to track costs, but has not been asked to restructure its contracts. Source: AP

Maritime Reporter November 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Shell Resuming Nigeria EA Oil Production

Royal Dutch Shell said on Thursday it had resumed production of Nigerian EA crude oil and lifted its force majeure on the grade after completing repairs to a mooring platform.

EU Bans Crimea Investment, Targets Oil, Cruise Sectors

Measures take effect on Saturday; aim is to keep pressure on Russia over Ukraine. The European Union banned investment in Crimea on Thursday, halting European

Hiab Switches to Dealer-based Distribution in Mexico

Hiab, part of Cargotec, and Consorcio Industrial Puebla S.A.P.I. de C.V. (CIPSA) have signed an agreement regarding a long-term distribution partnership in the Americas region.

Shipbuilding

NASSCO Opens Bremerton Repair Facility

General Dynamics NASSCO celebrated the grand opening of its new location in Bremerton, Wash., yesterday. The facility will support the company’s recently-awarded contract to repair and maintain U.

Damen Responds to Evolving Fishing Practices

Maaskant Shipyards Stellendam meets fishing sector’s growing needs by performing electric pulse fishing conversions   As European fishing policies evolve, so fishing techniques advance.

Maaskant Shipyards Earns ISO 9001:2008 Certificate

Maaskant Shipyards (Stellendam), part of Damen Shipyards Group, has received certification from Bureau Veritas for aligning its quality and management systems with

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Repair Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2009 sec (5 req/sec)