Northrop Grumman Awarded $114 Million Long Lead Material Contract Modification on U.S. Navy DDG 51 Class Destroyer

Northrop Grumman Awarded $114 Million Long Lead Material Contract Modification on U.S. Navy DDG 51 Class Destroyer
April 23, 2010

PASCAGOULA, Miss. -- The U.S. Navy awarded a $114 million contract modification to Northrop Grumman Corporation (NYSE:NOC) to provide long lead materials for the company's 30th DDG 51 class Aegis guided missile destroyer. The materials purchased will be used in the construction of DDG 114.

In April 2009, the U.S. Navy announced Northrop Grumman would be awarded contracts for the first two destroyers in the DDG 51 program continuation. The company has delivered 26 of 28 ships, with two more ships currently under construction in Pascagoula.

This award is a modification of a contract awarded in December 2009 when the U.S. Navy awarded $171 million for long lead material purchases for DDG 113.

"The DDG 51 production line continues to be the most successful shipbuilding program in the history of our Gulf Coast operations and this contract fortifies that distinction," said Bob Merchent, vice president of surface combatants for Northrop Grumman Shipbuilding-Gulf Coast. "This award allows us to maintain focus on supply chain management and move forward in procuring equipment toward the construction of DDG 114. The improvements we've put in place throughout our facilities will ensure the Navy and our nation will receive a quality product for American Sailors, built by American shipbuilders."

This contract modification will allow the company's supply chain program to begin purchasing propulsion gas turbines, generators, controllable pitch propeller, and other components to support construction of DDG 114.

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