Rival Contractors Agree to Work Together on Stealth DestroyerApril 14, 2009
 General Dynamics and Northrop Grumman agreed to a Pentagon proposal requiring that all three of the Navy's stealth destroyers be built at General Dynamics’ shipyard in Maine, according to a report in The New York Times. Northrop Grumman had lobbied to build one of the DDG-1000 destroyers at its shipyard in Mississippi. Instead, it will now contribute major components for each of the ships. The DDG-1000 would cost an estimated $3.3 billion for the initial ship, and at least $2.5 billion for additional vessels if the Navy builds 10 as originally planned. But Defense Secretary Robert Gates has limited the program to just three ships, which might result in a price tag of $5 billion or more per ship because economies of scale would be lost, some critics of the move point out. The Pentagon pushed both defense contractors to build the ships in one facility in a bid to keep costs down. Gates said it would be too costly and inefficient to have both companies' shipyards ramp up for the same vessel, in this case. The deal, in another case, also gives Northrop Grumman contracts for two DDG-51 destroyers at its own shipyard in Mississippi, while General Dynamics will build a third DDG-51, once it completes work on the DDG-1000s, at its shipyard. The DDG-51 is likely to cost an average of $1.5 billion to $2 billion each. (U.S. Navy photo illustration/Released) |
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