December 3, 2009
Navy awards $171 million DDG 51 contract
The U.S. Navy has awarded a $171 million fixed-price advance procurement contract to Northrop Grumman Corporation (NYSE:NOC) to provide long lead materials for a continuation in the Aegis-class DDG 51 destroyer program. The materials purchased will be used in the construction of DDG 113.
Last April, the U.S. Navy announced Northrop Grumman would be awarded contracts for the first two destroyers in the DDG 51 program continuation.
"This award will allow us to capitalize on our long history of building DDG-class ships and provide the opportunity to exploit a number of process improvements we've been implementing," said Irwin F. Edenzon, sector vice president and general manager, Northrop Grumman Shipbuilding -- Gulf Coast. "We have worked closely with the Navy to secure funding for long lead time material that will support timely continuation of the DDG 51 production line. Also, this award is important to the nationwide DDG supplier base, a critical element in the program's success."
The funds will be used to purchase long lead time materials and major equipment in support of the new ship, including main propulsion engines, gas turbine generators, propellers and air conditioning systems. The work will be performed at Northrop Grumman's Pascagoula shipyard and the award of the construction contract is expected in 2010.