NEWS Navy Terminates Lockheed Martin LCS Contract The U.S. Navy canceled a widely criticized Lockheed Martin Corp. contract to build a next-generation combat ship after negotiations to control cost overruns failed. Lockheed Martin Corporation expressed disappointment over the U.S. Navy's decision to terminate its contract for construction of the second of two new Littoral Combat Ships (LCS.) The Navy announced the action at the expiration of a 90-day stop work order imposed on the second ship in January to allow the service time to review costs associated with construction of the first LCS. On March 15, Navy Secretary Donald Winter announced that the stop work order would be lifted only if Lockheed Martin agreed to accept a fixed price incentive contract for its second ship. Lockheed Martin's LCS team -- including naval architect Gibbs & Cox and shipbuilders Bollinger Shipyards and Marinette Marine -- was one of two industry groups competitively selected in May 2004 to each design and build two ships for evaluation by the Navy. The Lockheed Martin team was cleared to commence detailed design and construction of the first ship in December 2004; the keel for LCS 1, Freedom, was laid in June 2005 at Marinette Marine in Wisconsin, where the ship was christened and launched in September 2006. In June 2006, the Navy awarded the Lockheed Martin team a cost plus incentive fee (CPIF) contract to commence work on its second ship, LCS 3, at Bollinger Shipyards in Louisiana. Only a few short months ago, there was cause for celebration with the launching of the first vessel -- Freedom -- in the new Littoral Combat Ship class. Due to cost overruns and future fears of rapidly rising costs, the Navy has cancelled the contract with the Lockheed Martin team when renegotiations failed. DSV Conversions Completed Bollinger Shipyards, Inc., has performed conversions and modifications to three separate dive support vessels for EPIC Divers & Marine. The first of the three conversions was completed on the 220 x 45 x 21-ft. dynamically positioned (DP) Class II Dive and ROV support vessel EPIC Diver at the Bollinger Algiers location. The EPIC Diver is one of the newest acquisitions to the EPIC fleet and will be their primary DP and ROV support vessel. While at Bollinger the vessel renewed her regulatory status and documentation, received DP system upgrades with the installation of the L3 Communications (Nautronix) NMS 6000 Duplex DP System, while taking on the new colors and name EPIC Diver. The vessel is ABS Certified, DPII, and SOLAS. The second and third vessel upgrades both came out of Bollinger's Larose facility. The EPIC Explorer was delivered from the Larose facility after going through a full conversion from offshore supply vessel to a fourpoint, 1000 ft. saturation dive support vessel, with upgraded accommodations for forty-eight persons, newly installed 1,000-ft. six-person Saturation Dive system and associated dive support equipment, EBI 30 ton telescoping deck crane, 10-ft diameter Moon Pool, updated electrical components, and renewed regulatory compliance meeting all USCG inspection criteria for subchapter I certification. The vessel measures 210 x 40 x 14-ft. with over 1,600 ft. of clear deck space. The third vessel, the EPIC Seahorse, completed a life extension program renewing all regulatory requirements and reconfiguring the vessel for optimum use of the back deck area, repositioning dive support equipment below deck. The vessel measures 210 x 40 x 14-ft. and is capable of providing a full range of subsea project support as a four-point vessel. Conrad Wins Contracts Conrad Industries, Inc. signed six contracts for the construction of seven vessels and a record current backlog of approximately $97m compared to $84.5m at December 31, 2006. Bay-Houston Towing Co. and Suderman & Young Towing Company, L.P., for which the company is constructing two tugs at our Orange Shipbuilding facility, have exercised options for two additional 98 ft., Z-Tech 7500 Class Terminal/Escort Tugs, sister vessels for the others under construction. Settoon Towing has exercised options for the construction of two additional 214 x 42 x 12-ft., 8,500 bbl. double skin tank barges similar to two others under construction for Settoon Towing at the Morgan City facilities. In addition, contracts were signed for one 120 ft. deck barge, one 50 ft. deck barge and one 100 ft. spud barge by two other customers. H.O. Bostrom Co. www.hobostrom.com NEW! Shock Mitigating Marine Seat System for Comfort & Safety Callenberg Acquires Dynamic Marine Electric Callenberg Engineering agreed to acquire the activities of Dynamic Marine Electric, a leader in lighting components and electrical sales to the marine market. Combinig the activities of Dynamaic Marine with Callenberg's creates the largest electrical supplier to the marine industry in South Florida. Dynamic Marine's activities complement Callenberg's existing product and service offereings. Callenberg will now be able to offer lighting products from Osram, Philips, Radium and Slyvania at competitive pricing. New Pacifica Marine Seat features a water-resistant DryRide to seal out water; serpentine spring system eliminates bottoming out while seated Seaspension® pedestal system, with its internal progressively rated spring, isolates shock up to 6Gs and reduces the impact felt by riders by more than 50%. TEL 262-542-0222 · FAX 262-542-3784 E-mail firstname.lastname@example.org 6 · MarineNews · May, 2007
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