Tue, May 25, 2004
Northrop Grumman Will Build CVN-21
The Navy and Northrop Grumman Newport News (NGNN) have
successfully negotiated the construction preparation (CP) contract
for CVN 21, the next generation aircraft carrier.
CVN 21 will be the centerpiece of tomorrow’s carrier
strike groups and a contributor to the future expeditionary strike
force as envisioned in “Sea Power 21.”
Advance procurement and advance construction of components and
associated design efforts in support of the anticipated Fiscal 2007
ship procurement for CVN 21 are provided for under the
contract.
The CVN 21 CP contract is a three-year, cost type contract for
advanced procurement of material, design and engineering, and
advance construction of CVN 21.
The total value of the contract is $1.4 billion. This contract
includes cost, schedule and performance incentives designed to
ensure CVN 21 requirements are met at an affordable price.
Speaking about the contract, John Young, assistant secretary of
the Navy for research, development and acquisition said, “The
contract agreement reached by the Navy and the Northrop Grumman
Newport News (NGNN)team is an important step in the course charted
for development of the next generation aircraft carrier. This
contract provides for the continued design and development of the
next generation aircraft carrier, as well as incentives for NGNN
and the Navy team to work together to develop and manage the design
of the CVN 21.
The contract structure has a portfolio of incentives that
focuses on obtaining the most innovative ship design that will meet
the program’s performance goals, while emphasizing timely
delivery and control of all costs – material, labor,
facilities, overhead and construction. This CP contract is a
win-win for both the Navy and NGNN, and is a significant
accomplishment for the CVN 21 program. The contract establishes key
metrics for NGNN and the Navy, and provides the tools necessary for
the Navy to work with NGNN to manage the design of CVN 21."
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