U.S. Navy Awards $81 Million To Northrop Grumman Ingalls
CONTRACT SUPPORTS CONSTRUCTION OF LHD 8

June 29, 2001 — The U.S. Navy has awarded an additional $81.3 million to Northrop Grumman Ingalls Shipbuilding for the continuation of work towards the construction of an eighth WASP (LHD 1) Class large-deck multipurpose amphibious assault ship.

Seven of the huge ships, designed to carry some 2,000 Marines to world trouble spots, have already been delivered to the Navy by Ingalls, with six of them active in the Fleet. USS IWO JIMA (LHD 7), will be commissioned in Pensacola, Florida, on June 30.

Under the contract modification awarded today by the Navy, Ingalls will purchase construction materials, and begin initial preparations for the construction of selected small sections of the ship, known as assemblies and subassemblies. Actual construction of the ship assemblies will begin following completion of material procurement and previously funded design work. A construction contract for full ship construction is expected in early 2002.

This additional funding for Ingalls to continue preparing to build LHD 8 reflects the strong support for this ship by the Navy / Marine Corps team, the Department of Defense, and the U.S. Congress," said Jerry St. Pé, Chief Operating Officer of Northrop Grumman Ship Systems. "Keeping this funding stream active takes full advantage of the active production line at Ingalls, resulting in more efficient, more cost effective production of the ship B and savings of hundreds of millions of taxpayer dollars over the life of the procurement process for LHD 8," St. Pé said.

Thus far, Congress has appropriated a total of $880 million in design and material procurement funding for the LHD 8. This includes $460 million in a Fiscal Year 2001 Defense Appropriations measure passed last year, in addition to $420 million appropriated in Fiscal Years 1999 and 2000.

Ingalls President Dave Wright said work under the original contract has already begun, and that this additional funding will fortify the continued work towards the construction of the ship. "This award is one more giant step toward an actual construction contract that will allow is to begin building this important ship in partnership with the Navy," said Wright.

As the large-deck centerpiece of a Navy/Marine Corps Amphibious Ready Group (ARG), LHDs embark, transport, deploy, command and fully support a Marine Expeditionary Unit (MEU). The ships are fully capable of amphibious assault, advance force and special purpose operations, as well as noncombatant evacuation and other humanitarian missions. The ships are 844 feet long and displace 40,500 tons.

For operational support, the ship carries its own AV- 8B Harrier II jets, and can carry Osprey (MV-22) tiltrotor aircraft, as well as a full range of Navy / Marine Corps helicopters, amphibious vehicles and tanks. Additionally, the ships are fully-equipped with command and control (C⁴I) systems for flagship command duty, and have medical facilities -- including a 600-bed hospital -- second only to the Navy's Hospital Ships in capability.

Ingalls is part of Northrop Grumman Ship Systems (NGSS), headquartered in Pascagoula, Mississippi, which also includes the Ship Systems Full Service Center, also located in Pascagoula, as well as Northrop Grumman Avondale Industries, located in New Orleans and Tallulah, Louisiana, and Gulfport, Mississippi. NGSS, which employs more than 17,000 shipbuilding professionals, primarily in Mississippi and Louisiana, is one of the nation's leading full service systems companies for the design, engineering, construction, and life cycle support of major surface ships for the U.S. Navy, U.S. Coast Guard and international navies, and for commercial vessels of all types. NGSS has a firm business backlog exceeding $5.2 billion, in a variety of naval and commercial shipbuilding programs.

Northrop Grumman Corporation is a $15 billion, global aerospace and defense company with its worldwide headquarters in Los Angeles. Northrop Grumman provides technologically advanced, innovative products, services and solutions in defense and commercial electronics, systems integration, information technology and non-nuclear shipbuilding and systems. With 80,000 employees and operations in 44 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.