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United States Marine Repair – Press Releases
FOR IMMEDIATE RELEASE


Southwest Marine Wins $55 Million Navy Contract

SAN DIEGO – Sept. 7th, 2000 – The Navy today awarded a five-year, phased-maintenance contract for LSD – 41/49-class ships to Southwest Marine (SWM), a member of the United States Marine Repair (USMR) family of shipyards. USMR is America's largest non-nuclear ship repair, modernization, conversion and overhaul company.

SWM has now won all of the LPD and LSD-class ships in San Diego. On June 13th, 2000, a $100 million, five-year, phased-maintenance contract for work on six LPD-class ships, two LSD-class ships and one AGF was awarded to SWM. These Best Value Procurement awards were made based on cost, past performance and an outstanding track record of craftsmanship and on-time delivery.

Monty Dickinson, SWM's president and general manager and president of USMR West, said, "This is great news for our entire workforce. Winning this award further shows that our commitment to continuous improvement in all of our processes makes good business sense and is recognized as extremely valuable to our biggest customer, the U.S. Navy. Our "People are Important" philosophy pertains not only to our workforce, but to our customers and community outside our company as well. By treating each and every one of our people with respect and dignity, they, in turn, treat our customers in the same manner. It's really a very simple concept, but it works. Our customers have also seen the extensive improvements we've made to our facility over the last few years. These changes, such as new equipment, a new training center and newly remodeled offices have enabled us to provide the very best working environment for our people and the best value for the dollar to the Navy and the taxpayers. We have dramatically increased our efficiency and productivity and have truly become the "go-to" shipyard in San Diego."

USS PEARL HARBOR (LSD-52) arrives at SWM on October 11, 2000. USS COMSTOCK (LSD-45), the last availability, is scheduled to complete on September 14th, 2005. USS RUSHMORE (LSD-47), USS HARPERS FERRY (LSD-49) and USS GERMANTOWN (LSD-42) are also part of the contract. The ships are all home ported in San Diego, and keeping the work here enhances the quality of life for the sailors onboard the vessels. The work package includes advance planning, general repairs and alterations. Approximately 150 additional workers will be hired, increasing SWM's work force to almost 1400 people.

NASSCO had this contract from 1995 through this year. One of the reasons SWM won this work is the groundbreaking teaming arrangement with Continental Maritime and Pacific Ship Repair and Fabrication. This partnership helps to level the manning peaks and valleys by better distribution of work. The other reason for the award was the competitive price and outstanding prior performance on past availabilities.

Dickinson also added, "Due to lack of government funding, we've seen a drastic downturn in Navy work over the summer. In fact, there was a period when our yard was completely empty. We're very glad to have won this contract and to be able to recall our people and hire additional shipyard workers. We're also pleased to be able to support the readiness of our fleet, which has been in decline for some time."

In addition to SWM in San Diego, USMR shipyards are located in San Francisco (San Francisco Drydock Inc.); San Pedro, Calif.; Ingleside, Texas; and Norfolk, Va., the company's corporate headquarters.

The Carlyle Group, a Washington, D.C.-investment banking company, owns USMR.

Contact:
Bob Kilpatrick (619) 238-1000, ext. 2810
Jackie Kreisler (619) 557-4289