NEWS RELEASE from the United States Department of Defense<br /><br />No. 491-04<br />IMMEDIATE RELEASE<br />May 21, 2004<br />Media Contact: (703)697-5131<br />Public/Industry Contact: (703)428-0711<br /><br />Next Generation Aircraft Carrier Contract Awarded<br /><br /><br /> The Navy and Northrop Grumman Newport News (NGNN) have successfully<br />negotiated the construction preparation (CP) contract for CVN 21, the next<br />generation aircraft carrier. CVN 21 will be the centerpiece of tomorrow’s carrier<br />strike groups and a contributor to the future expeditionary strike force as<br />envisioned in “Sea Power 21.”<br /><br /><br /> Advance procurement and advance construction of components and<br />associated design efforts in support of the anticipated Fiscal 2007 ship<br />procurement for CVN 21 are provided for under the contract.<br /><br /><br /> The CVN 21 CP contract is a three-year, cost type contract for advanced<br />procurement of material, design and engineering, and advance construction of CVN 21.<br /><br /><br /> The total value of the contract is $1.4 billion, which includes a fee<br />earnable to $161.9 million. This contract includes cost, schedule and performance<br />incentives designed to ensure CVN 21 requirements are met at an affordable price.<br /><br /><br /> Speaking about the contract, John Young, assistant secretary of the<br />Navy for research, development and acquisition said, “The contract agreement<br />reached by the Navy and the Northrop Grumman Newport News (NGNN) team is an<br />important step in the course charted for development of the next generation<br />aircraft carrier. This contract provides for the continued design and development<br />of the next generation aircraft carrier, as well as incentives for NGNN and the<br />Navy team to work together to develop and manage the design of the CVN 21. The<br />contract structure has a portfolio of incentives that focuses on obtaining the most<br />innovative ship design that will meet the program’s performance goals, while<br />emphasizing timely delivery and control of all costs – material, labor, facilities,<br />overhead and construction. This CP contract is a win-win for both the Navy and<br />NGNN and is a significant accomplishment for the CVN 21 program. The contract<br />establishes key metrics for NGNN and the Navy and provides the tools necessary for<br />the Navy to work with NGNN to manage the design of CVN 21."<br /><br /><br /> For more information, please contact Navy Public Affairs at (703)<br />697-5342.<br /><br /><br />[Web Version: ]http://www.defenselink.mil/releases/2004/nr20040521-0820.html]<br /><br />-- News Releases: http://www.defenselink.mil/releases/<br />-- DoD News: http://www.defenselink.mil/news/dodnews.html<br />-- Subscribe/Unsubscribe: http://www.defenselink.mil/news/dodnews.html#e-mail<br />-- Today in DoD: http://www.defenselink.mil/today/