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Tuesday, June 16, 2015

Navy: CVN-79 Contract Has Lowest Ceiling Price Ever; R&D Investment Will Take Out Further Cost

USS John F. Kennedy (CVN-79)The Navy’s recently awarded contract for the construction of the next aircraft carrier has the lowest price of any nuclear carrier (CVN) fixed-price contract, and for a ship that is much more complex and capable than its Nimitz-class predecessor, the program executive officer for aircraft carriers told reporters Monday morning.

Rear Adm. Tom Moore said the pair of awards – a contract modification and a new contract totaling $4.29 billion – for remaining design and construction for the future John F. Kennedy (CVN-79) is “probably the best CVN fixed-price contract we’ve ever had with [Newport News Shipbuilding] in terms of the target fee in the contract, the steepness of the share lines, the ceiling price in the contract – all reflective of the fact that the shipbuilder and us have a very solid understanding of where we are in the ship and the cost we’re able to take out.”

The Navy expects Kennedy will cost $11.35 billion compared to the $12.9 for the future Gerald R. Ford (CVN-78).

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