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FOR IMMEDIATE RELEASE
Total award amount to Norshipco, with
options, could exceed $89 million
- United Defense, Industries, Inc (NYSE: UDI) announced today
the award to NORSHIPCO a division of United States Marine Repair
of 2 multi-year, multi-ship, cost plus contracts by the U.S. Navy’s
Supervisor of Shipbuilding and Repair (SUPSHIP), Portsmouth worth
nearly $90 million if all options are exercised.
The largest contract, for six LSD-41 and 48
class ships, puts the entire LSD fleet of this ship type on East
and West coasts under maintenance contracts with United States
Marine Repair, a subsidiary of United Defense. The Advance Planning
award totals $52,610. The combined total contract award, if the
Navy exercises all options, is approximately $64 million.
The ships included in this award, all home-ported
in Norfolk, are the USS OAK HILL, USS WHIDBEY ISLAND, USS GUNSTON
HALL, USS ASHLAND, USS TORTUGA, and the USS CARTER HALL. The work
package includes pier side and dry dock work, ship alterations,
hull, mechanical and electrical repairs, modernization and habitability
work and required emergent repairs. According to Tom Epley, NORSHIPCO's
president and general manager, "Being awarded this long-term
contract gives NORSHIPCO a greater ability to stabilize our work
force and avoid the employment swings we often encounter under
the fixed-price, single availability method of contracting."
Epley indicated that the Navy is returning to
multi-ship, multi-year cost contracting to decrease the amount
of time its ships spend in repair availabilities and to increase
contractor efficiency. "With this award," said Epley,
"our workers will know the ships and their systems, as well
as the assigned sailors. This should result in lower costs and
more time available for training, benefiting both the Navy and
the company from this long-term relationship."
Another contract awarded to NORSHIPCO by SUPSHIP,
Portsmouth, is the Docking Phased Maintenance, Fixed Price Availability
for the USS SEATTLE (AOE-3), a Norfolk-based, fast combat support
ship. The initial award for advance planning is valued at $1.4
million. If the Navy exercises the contract options, the total
award value will exceed $25 million.
The USS SEATTLE is scheduled to arrive at NORSHIPCO
on October 15, 2002. The work package includes dry docking, structural
repairs, piping, machinery and electrical repairs and interior
preservation work. Approximately 250 NORSHIPCO workers per day
will be assigned to the ship.
NORSHIPCO is a member of the United States Marine
Repair (USMR) family of shipyards, a wholly owned subsidiary of
United Defense with facilities in Norfolk, Va.; San Diego, San
Pedro and San Francisco, Calif.; Ingleside, Texas; and Pearl Harbor,
Hawaii.
United Defense is a leader in the design, development and production
of combat vehicles, artillery, naval guns, missile launchers and
precision munitions used by the U.S. Department of Defense and
allies worldwide and is America's largest non-nuclear ship repair,
modernization and conversion company. To learn more about United
Defense, visit www.uniteddefense.com
Information in this release may involve guidance, expectations,
beliefs, plans, intentions or strategies regarding the future.
These forward-looking statements involve risks and uncertainties.
All forward-looking statements included in this release are based
upon information available to United Defense Industries, Inc.
as of the date of the release, and we assume no obligation to
update any such forward-looking statements. The statements in
this release are not guarantees of future performance and actual
results could differ materially from our current expectations.
Numerous factors could cause or contribute to such differences.
Please refer to the Company's Quarterly Report on Form 10Q for
the quarter ended June 30, 2002 and in our other reports filed
from time to time with the Securities and Exchange Commission
for a further discussion of the factors and risks associated with
our business.
Doug Coffey
United Defense
(703) 312-6121
Jackie Kreisler
Southwest Marine
(619) 557-4289
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