Todd Pacific Shipyards Awarded Contract for Long Term Maintenance

Wednesday, March 03, 2004
Todd Pacific Shipyards Corporation has been notified that it has been awarded a contract with the United States Coast Guard ("Coast Guard") to provide long-term maintenance of Polar Class icebreakers. The contract consists of multiple contract options for planned maintenance availabilities (PMA's) and docking planned maintenance availabilities (DPMA's) for the POLAR STAR (WAGB-10) and POLAR SEA (WAGB-11). The availabilities, and their companion planning options, extend through the last DPMA ending August 5, 2008, and the last PMA ending on September 2, 2008. The work to be performed includes availability planning and generalized ship maintenance and repairs as needed, with emphasis on propulsion and deck machinery work. The Company expects to team with the Coast Guard to identify the appropriate best value work scope and technical solutions for support of the two icebreakers. Todd Pacific's work will be performed under a cost plus incentive fee contract. Todd Pacific has performed similar work for the Coast Guard over the past several years under individual, competitively bid, firm fixed priced contracts. This current award marks the first time the Coast Guard has used a long term phased-maintenance approach on the two Polar Class icebreakers home ported in Seattle. The total value of all options, if exercised by the Coast Guard, is approximately $50 million. There is no assurance that all options will be exercised, in whole or in part.

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