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United States Marine Repair – Press Releases
FOR IMMEDIATE RELEASE


$54 million Navy contract awarded to Southwest Marine
San Diego (August 2, 2001) The Navy announced today the award of a $54 million, five-year continuous maintenance contract for work on DDG-51-class ships to Southwest Marine Inc (SWM), a member of the United States Marine Repair (USMR) family of shipyards. The USS STETHAM (DDG-63), arrives at SWM on Sept. 26, 2001. The last ship in the contract, USS DECATUR (DDG-73), arrives on July 12, 2006. The entire contract contains a total of 23 availabilities. SWM currently holds the DDG PSA continuous maintenance contract, and with the award of this contract, performs all DDG repair work in San Diego.

This award includes ten ships: USS JOHN PAUL JONES (DDG-53), USS FITZGERALD (DDG-62), USS STETHAM (DDG-63), USS BENFOLD (DDG-65), USS MILIUS (DDG-69), USS DECATUR (DDG-73), USS HIGGINS (DDG-85), USS McCAMPBELL (DDG-85), USS PREBLE (DDG-88) and USS MUSTIN (DDG-89). The contract also includes an option for USS LASSEN (DDG-82) in FY 2003 and USS HOWARD in FY 2004. The work package on each ship includes dry docking, shaft work, underwater hull painting, maintenance, various repairs, electronic upgrades, structural and piping work and alterations. Monty Dickinson, SWM's president and general manager said, "We're pleased that the Navy has once again chosen Southwest Marine to perform this work. The award of this long-term contract is a real tribute to our work force and a testimony to the outstanding services that our people provide to the United States Government. They have extensive knowledge and understanding of these vessels, as we've been doing work on this class of ships for many years. I'm extremely proud to be viewed as the preferred shipyard in San Diego."

SWM has teamed with neighboring shipyard Continental Maritime (CMSD) on this contract. In addition to SWM's piers and dry dock, the additional availability of Continental's piers affords the Navy the best use of both shipyard resources at competitive prices.

Dickinson also added, "This contract will enable SWM to recall 150 workers, recently laid off due to a sharp decline in work and the descoping or deferral of needed maintenance. During the current 2002 budget process, we are hopeful that these ships will be fully funded, so all of the required repairs can be made and the readiness of our fleet can be maintained. In order to avoid the usual last-ditch effort to obtain supplemental funding to augment the 2002 budget, which does not include a plus up for ship depot maintenance, we are working together with the Navy to obtain the correct amount of dollars needed up front."

The Carlyle Group, a Washington, D.C.-based private investment firm, owns United States Marine Repair. USMR yards are located in San Diego, San Pedro and San Francisco, Calif.; Ingleside, Texas; and Norfolk, Va.

Contact:
Bob Kilpatrick,
SouthWest Marine
(619)238-1000, Ext. 2810
kilpatrb@swmarine.com

Jackie Kreisler
SouthWest Marine, USMR
(619) 557-4289
kreislerj@swmarine.com