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Virginia Class Block 2 Team Wins SECNAV Competition

Navy Newsstand

Story Number: NNS040508-04

Release Date: 5/9/2004 9:08:00 AM

By Kevin Sykes, Naval Sea Systems Command Public Affairs

WASHINGTON (NNS) -- The Honorable Gordon R. England, Secretary of the Navy, announced the individual and team winners of the FY 2003 Department of the Navy Competition and Procurement Excellence Awards April 23.

Naval Sea Systems Command, Program Executive Office for Submarines, Virginia Block 2 (VCB2) Team won in the Team Innovation category.

In achieving this award, VCB2 Team initiated and submitted an innovative contracting strategy that permitted an extremely flexible agreement with the shipbuilders on a Fixed Price Incentive Block Buy for construction of six Virginia-class submarines from FY 03-07.

The contract provided flexibility for the government through the exercise of the multi-year (MY) transition provision, to procure up to seven multi-year submarines with a total contract value of approximately $11 billion (including the FY 03 non-MY submarine). The contract's unprecedented MY feature will provide stability to the Navy's industrial partners.

Jan. 29, the Virginia-class Block 2 ship construction contract transitioned to an innovative Multi-Year Procurement Strategy for five ships. In doing so, the Navy will save up to $80 million per submarine over the five-ship contract for a total of $400 million.

"The VCBN2 Team spent more than nine months crafting what is the largest submarine construction contract in the Navy's history, and they did so with an eye toward cutting cost," said Rear Adm. John D. Butler, program executive officer (submarines). "The $400 million savings over five Virginia-class submarines is a testament to their hard work and dedication. They are a great team."

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