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

Shipbuilding

ESSA's Fleet Upgradation Environmental Driven

State-controlled Exportadora de Sal SA de CV of Mexico ("ESSA"), one of the world’s largest salt exporters with a 10-million-ton annual production, has strengthened

Kleven Wins New Yacht Contract

Norwegian ship builder Kleven has secured a new contract for a high specification, 116-metre long Expedition Support Vessel. The order is placed by Mr Graeme Hart,

World’s First LNG-Ready Ultra Large Container Ship Named

The race is on in global maritime circles to be the “world’s first” in every aspect of environmental friendliness, particularly in regards to the incorporation of LNG as fuel onboard commercial ships.

 
 
Maritime Security Maritime Standards Pipelines Pod Propulsion Port Authority Salvage Ship Electronics Ship Repair Ship Simulators 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: 0.1392 sec (7 req/sec)