Todd Pacific Shipyards gets five year Navy drydocking contract

Todd Shipyards Corporation (NYSE:TOD) reports its Todd Pacific Shipyards Corporation subsidiary has been awarded, a five-year U.S. Navy Multi-Ship/Multi-Option contract (“MS/MO”) for the drydocking of surface combatants homeported at Naval Station Everett or visiting the Puget Sound region.

This is the third successive five-year MS/MO contract awarded Todd Pacific for the surface combatants. But though the past contract included pier-side availabilities in addition to drydocking availabilities, this one does not. The Navy has announced its intent to issue a request for proposals in March 2011 for a five-year MS/MO contract to accomplish the pier-side repairs on the surface combatant ships homeported at Naval Station Everett.

Under the drydocking MS/MO, Todd Pacific will act as the prime contractor and lead a team of subcontractors who may perform as much as half of the work. The work will be done in Todd Pacific’s Seattle shipyard. It will be performed at the option of the Navy, which has not established a dollar value for the work. Todd Pacific estimates the value may be in the range of $50 million – $80 million over five years, if all options are exercised.

February 2, 2011