April 1977 - Maritime Reporter and Engineering News

Todd's Naval Shipbuilding Backlog Now Totals One-Half Billion Dollars

Todd Shipyards Corporation has been awarded contracts by the U.S. Navy to build, under the Navy's fiscal 1977 program, an additional five guided-missile frigates, FFG-7 class (See MARITIME REPORTER / Engineering News issue of March 15, 1977).

The base price for this second flight of five ships is approximately $252 million, and the contracts contain provisions for upward price adjustments to compensate for increases in the costs of labor and material. With the six ships of the same class awarded to Todd in the first flight last year for $295 million, this award brings the company's naval shipbuilding backlog to over one-half billion dollars for the 11 ships.

According to John T. Gilbride, chairman of Todd, the contracts provide for exercise of options by the Navy of five to seven additional ships based on Congressional appropriations authorized for the fiscal 1978 program. The contracts require that such options be exercised prior to Feb- ruary 28, 1978. The addition to the contract prices will be between $235 million and $380 million, depending on the number of ships to be purchased at that time.

Mr. Gilbride noted that three ships of the current order will be built at the Los Angeles (Calif.) Division, and two at the Seattle (Wash.) Division. Engineering, procurement and the creation of an FFG project organization expanding Todd's expertise in naval ship construction has taken place at both divisions during the past year, and actual production on the first flight has already commenced.

Deliveries of these ships will begin in the first quarter of 1980 and continue through 1981.

The Navy recently announced that its planning now encompasses the construction of 74 USN ships of this class. In addition, similar ships will be constructed for certain of our allies.

Thus far, awards have been made by the Navy for the construction of 18 USN ships and two ships for the Royal Australian Navy, of which Todd has received 11.

Based on present planning, at least 56 more of these ships will be constructed, and Todd expects to continue to be the builder of a majority of these ships through the next 10 years.

Other stories from April 1977 issue


Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.