USS Eisenhower Contract Announced

Wednesday, December 17, 2003
The Department of Defense announced that the Navy and Northrop Grumman Newport News (NGNN) have successfully renegotiated a modification to the refueling and complex overhaul (RCOH) contract for the USS Dwight D. Eisenhower (CVN 69). The contract modification extends the end date of the USS Eisenhower RCOH by 11 weeks to Nov. 6, 2004. This modification is due to realignment of work priorities to complete the USS Enterprise extended drydocking selected restricted availability, and the unforeseen impact of Hurricane Isabel. "The contract restructuring agreement reached by the Navy and the Northrop Grumman Newport News team is highly unique. The contract provides incentives for NGNN and the Navy team to work together to manage the completion of the USS Eisenhower refueling overhaul," according to John Young, assistant secretary of the Navy, for research, development and acquisition. "The Navy and NGNN have created a better incentive contract structure to contain cost risk and schedule adherence, and we expect this model to be used in future contracts for aircraft carrier construction and overhaul. Most importantly, the new contract structure will encourage careful management attention to progress on the RCOH, the most challenging engineering and industrial task undertaken anywhere by any organization. NGNN will definitely benefit because it provides additional motivation to reduce costs so they can maximize their fee. Any underrun is beneficial to both NGNN and the Navy. NGNN also agrees to an increased share of overruns if the costs exceed expectations, and a reduced minimum fee guarantee. The new contract structure creates a win-win opportunity that is fair, reasonable and achievable for both the Navy and Northrop Grumman Newport News," Young added. The Navy reset the contract target cost from $1.36 billion to NGNN's current estimated cost at completion of $1.49 billion. The difference was covered by existing engineering and science pool funds within the contract and reprogrammed money.
Maritime Reporter September 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


US Must Exercise Freedom of Navigation in Asia-Pacific -Navy Commander

The commander of U.S. forces in the Pacific said on Friday the United States must carry out freedom of navigation patrols throughout the Asia Pacific, but declined

China Opposed to Parties Entering 'territorial' Waters

China's Foreign Ministry said on Friday it was against parties entering territorial waters in the name of freedom of navigation, as the United States is considering

Servowatch IPMS Completes FATs for UK Navy

The fully integrated platform management system Servowatch designed and built for three new offshore patrol vessels for the U.K. Royal Navy has completed BAE Systems’ Factory Acceptance Tests (FAT).

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pod Propulsion Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.1274 sec (8 req/sec)