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Textron Systems Awarded $61M Navy Contract

Maritime Activity Reports, Inc.

January 10, 2003

Textron Systems’ Marine and Land Operations based in New Orleans, La., was awarded a contract by the U.S. Navy valued at over $61 million. This contract is for work associated with the Landing Craft, Air Cushion (LCAC) Service Life Extension Program (SLEP). LCAC is an amphibious vehicle that traverses snow, marsh, ice, tundra, sand and water. This is the second LCAC SLEP production contract awarded to Textron, and it will provide for the SLEP of five craft. All work is to begin immediately, with incremental deliveries of completed craft, with the last deliveries taking place in the last quarter of 2005. The first LCACs were manufactured in 1984 with a service life design of 20 years. All craft have performed at or above expectations and have become an integral part of the Navy's amphibious capabilities. The Service Life Extension Program will extend the useful life of the LCAC fleet, reducing operating costs and improving performance. The U.S. Navy's plan is to extend the service life of 74 fleet LCACs. Prior to this new production contract, initial design changes were developed, incorporated and tested on craft number 91. That craft was delivered to the U.S. Navy in March of 2001. Later in that same year, Textron Systems was awarded a production contract for the SLEP of three fleet LCACs. This latest contract brings the total number of craft awarded to Textron to eight. Additionally, the new contract provides options, that if exercised, will provide for the SLEP of four additional craft and increase the total value of the award to over $100 million. This new contract entails modifications for extending the service life of the LCAC from 20 to 30 years. Changes include incorporation of main engine upgrades, installation of a new skirt system, and some hull and fuel system modifications that were developed to improve trim and damage stability characteristics of the LCAC. In addition, communication/navigation systems will be upgraded for consistency with other U.S. Navy equipment and to reduce the costs of maintenance, repair and obsolescence of parts. The majority of the work will be completed at Textron Systems Marine & Land Operations in New Orleans.

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