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NAVY SHIPBUILDING COSTS
Which of these could best lower shipbuilding costs?

 Staying with proven technology
 Multiyear fixed price contracts
 Reform Navy acquisition

November 17, 2009

Northrop Grumman wins Navy award worth potential $635 million

Northrop Grumman Shipbuilding, Inc., Newport News, Va., is being awarded a $96,682,393 cost-plus-fixed-fee contract for engineering, technical, design, configuration management, integrated logistics support, database management, research and development, modernization, trade, and industrial support for Los Angeles, Seawolf, Virginia, Ohio SSBN, and Ohio SSGN Class submarines, special mission submersible interfaces, submarine support facilities, as well as Foreign Military Sales programs. This contract includes options which, if exercised, will bring the total cumulative value of the contract to $635,287,686. Work will be performed in Newport News, Va., and is expected to be completed by September 2010. Contract funds in the amount of $44,473,900 will expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-10-C-2102).


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