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THE CREDIT CRUNCH AND SHIPBUILDING
World shipyards have a record order backlog. What effect will the global credit crunch have?

No effect
A slow down in new orders
Cancellation of some existing orders
Cancellation of many exisiting orders

Marine Log

April 14, 2008

$453 million Navy contract for Newport News

Northrop Grumman Shipbuilding, Newport News, Va., is being awarded a $453,263,184 cost-plus-incentive-fee contract for the accomplishment of the fiscal year 2008 Extended Drydocking Selected Restricted Availability (EDSRA) of USS Enterprise (CVN 65). The CVN 65 FY08 EDSRA is a ship depot availability of approximately 16-month duration. EDSRAs are similar to overhauls in that they restore the ship, including all subsystems that affect combat capability and safety, to established performance standards. Additionally, an EDSRA provides an opportunity to perform hull inspections and recoating, radiological surveys, and other maintenance related evolutions below the waterline that cannot be accomplished while the ship is waterborne. The EDSRA provides sufficient time to perform more extensive propulsion plant repairs and testing than is possible during an Extended Selected Restricted Availability (ESRA). Work will be performed in Newport News, Va., and work is expected to be completed by August 2009. Contract funds will expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity (N00024-08-C-2100).

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