Page 38: of Maritime Reporter Magazine (April 1984)

Exhibit 2 Navy Ship Overhauls Scheduled For The Private Sector During FY 1984-1985

Work Start Type Procurement

Ship Date Contract Contract Office Notes

ARDM 1 Jan 85 Fixed Price SupShip Charleston

ARDM 4 July 85 Fixed Price SupShip Boston

AS 33 June 85 Fixed Price NAVSEA 02

DD 974 Oct 83 CPAF NAVSEA 02 Awarded Ingalls

DD 979 Feb 84 CPAF NAVSEA 02 Awarded Bath

DD 980 Oct 84 CPAF NAVSEA 02 Awarded Coastal

DD 982 May 84 CPAF NAVSEA 02 Awarded Coastal

DD 983 June 84 CPAF NAVSEA 02 Awarded Ingalls

DD 987 Aug 84 CPAF NAVSEA 02 Awarded Bath

DD 988 Feb 85 CPAF NAVSEA 02 Awarded Ingalls

DD 989 Feb 85 CPAF NAVSEA 02 Awarded Bath

DDG 46 Mar 85 Fixed Price NAVSEA 02

FF 1038 Feb 86 Fixed Price SupShip Jacksonville

FF 1056 Sept 84 Fixed Price NAVSEA 02 Small Business Set Aside

FF 1059 Sept 84 Fixed Price NAVSEA 02

FF 1085 Nov 83 CPAF NAVSEA 02 Awarded Coastal

FF 1089 Feb 84 Fixed Price NAVSEA 02 Awarded Gen Ship

FF 1092 Aug 84 NAVSEA NAVSEA 02

FF 1094 Mar 84 CPAF NAVSEA 02 Awarded Coastal

FF 1095 May 85 CPAF NAVSEA 02 Will be multiship

FF 1097 Nov 85 CPAF NAVSEA 02 contract

FFG 5 Sept 84 Fixed Price NAVSEA 02

LKA 117 July 84 CPAF SupShip Portsmouth

LPD 1 Feb 85 Fixed Price SupShip Portsmouth

LPD 12 Aug 85 Fixed Price SupShip Portsmouth

LPD 14 June 84 Fixed Price SupShip Portsmouth

LSD 37 Jan 85 Fixed Price SupShip Portsmouth

LST 1180 June 84 Fixed Price SupShip Portsmouth

LST 1181 Apr 85 Fixed Price SupShip Portsmouth

MS0 443 Oct 84 Fixed Price SupShip Jacksonville

MSO 448 Jan 84 Fixed Price SupShip Charleston

AE 25 June 84 Fixed Price SupShip San Francisco

AE 29 July 85 Fixed Pnce SupShip San Francisco

AS 37 Jan 84 Fixed Price SupShip San Diego Awarded TAS

ASK 9 Sept 85 Fixed Price SupShip San Diego

DD 986 Nov 84 CPAF NAVSEA 02

FF 1053 July 85 Fixed Price NAVSEA 02 Small Business Set Aside

FF 1069 May 84 Fixed Price NAVSEA 02

FF 1083 Jan 84 CPFF NAVSEA 02 Awarded NASSCO

LPD 6 July 85 Fixed Price SupShip Portsmouth

LPH 10 Sept 85 Fixed Price NAVSEA 02

LSD 39 July 85 Fixed Price SupShip Long Beach

LST 1182 Jan 84 Fixed Price SupShip Portsmouth Awarded SD Iron & Steel

LST 1183 July 84 CPFF NAVSEA 02 Awarded NASSCO

LST 1184 Feb 84 CPFF NAVSEA 02 Awarded NASSCO

LST 1185 Feb 85 Fixed Price SupShip San Diego

LST 1189 Sept 84 Fixed Price SupShip Portsmouth Awarded NASSCO

LST 1198 Jan 85 CPFF NAVSEA 02 Awarded NASSCO

IX 501 Sept 84 Fixed Price SupShip San Diego

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UNITED

TECHNOLOGIES

ELLIOTT (continued from page 38)

About 30-40 percent of the cost of a typical combatant overhaul will be subcontracted by the ship- yard for material purchase. A large integrated yard le.g., Bath, In- galls) will subcontract 2-5 percent for outside labor. Smaller yards may subcontract out 50 percent for specialized services.

Profitability of Navy Overhaul

We asked master ship repair contractors about the profits in

Navy overhaul work. Of 22 responses: • 9 respondents said Navy over- hauls were less profitable than commercial repairs • 11 thought the Navy and commercial repair business had comparable profits • 2 said Navy was more profit- able than commercial work

Of the 49 Navy ship overhauls scheduled for the private sector over the next two years: • 31 will be fixed-price contracts • 14 will be cost-plus-award-fee contract • 4 will be cost-plus-fixed-fee contracts

Fixed-price contracts squeeze prof- its from bidders in an industry hungry for work. U.S. ship repair 40 Circle 218 on Reader Service Card Maritime Reporter/Engineering News