November 24, 1999 - A nationwide industrial team led by Litton Ingalls Shipbuilding, Pascagoula, Mississippi, has been awarded $98.4 million by the U.S. Navy for its work in the second phase of the Navy's DD 21 Destroyer Program. Phase Two of this program represents the completion of a ship concept design, as well as a submittal of a competitive proposal for the award of the full service contract. Other members of the Ingalls team include Raytheon Company, Boeing Aircraft and other divisions of Litton Industries.
"This announcement is a significant milestone for the Ingalls-led team involved in the development of the Navy's next generation of surface combatants, and reflects the Navy's continued strong support of this important program," said Jerry St. Pé, Chief Operating Officer of Litton Ship Systems, and Executive Vice President of Litton Industries (NYSE: LIT). Ingalls, along with Avondale Industries in New Orleans, operates as part of Litton Ship Systems. "This represents a percentage of the total $238 million awarded by the Navy to the DD 21 Shipbuilder Alliance. A final announcement in the program is expected in May of 2001," St. Pé said.
In May 1998, the U.S. Navy designated Ingalls and Bath Iron Works, who leads the second DD 21 team, as the "DD 21 Shipbuilder Alliance" to produce 32 ships.
The requirements of the 32-ship DD 21 program places an emphasis on reduced life-cycle costs including aggressive acquisition and operating costs. Production of these ships is scheduled to commence in 2004.
"While Ingalls and Bath are in direct competition during the design phase of the program, both yards will share in the construction of these ships," said St. Pé.