Ingalls Shipbuilding Wins $70m Navy Deal

(Press Release)
Thursday, February 23, 2012

Huntington Ingalls Industries (NYSE:HII) said its Ingalls Shipbuilding division has received a $70m cost-plus-fixed-fee advance procurement contract modification from the U.S. Navy to provide long-lead materials for LPD 27, the 11th amphibious transport dock of the USS San Antonio (LPD 17) class. The funds awarded to Ingalls will be used to purchase long-lead-time materials and major equipment in support of the new ship, including main engines and diesel generators and other equipment such as electrical switchboards, deck equipment and fire extinguishing systems. The work will be performed at the company's Pascagoula facility. This is the fourth advance procurement contract for LPD 27. The first contract was awarded in October 2010.

"We're building successes in the LPD program, and this award continues our momentum in establishing necessary prep work for the construction of LPD 27," said Doug Lounsberry, vice president and program manager, LPD program, Ingalls Shipbuilding. "The award allows our supply chain management to purchase essential equipment so our shipbuilders will be ready to effectively meet our schedule commitments with our Navy customer."

The 11 ships of the LPD 17 class are a key element of the Navy's ability to project power ashore. Collectively they functionally replace more than 41 ships (the LPD 4, LSD 36, LKA 113 and LST 1179 classes of amphibious ships), providing the Navy and Marine Corps with modern, sea-based platforms that are networked, survivable and built to operate with 21st century platforms, such as the MV-22 Osprey and amphibious assault vessels.

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