Procurement: August 8, 2002

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The Navy has negotiated a win-win deal between its two principle surface warfare shipyards, Bath Iron Works and Northrop Grumman. Under the deal, Bath Iron Works will give up its share of the LPD-17 landing ship program, allowing Northrop Grumman to build all 12 of these ships. In return. Northrop Grumman will give up four of the eight aegis destroyers it was scheduled to build, allowing Bath Iron Works to build more of this class. The move will save the Navy some money as both yards can better apply the lessons they have learned on previous ships built.--Stephen V Cole