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Image of Pentagon oval   United States Department of Defense
News Release

  No. 491-04

Next Generation Aircraft Carrier Contract Awarded

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, which includes a fee earnable to $161.9 million. 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."

For more information, please contact Navy Public Affairs at (703) 697-5342.

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