Leadership: Who Ya Gonna Call?

Archives

April 5, 2010:  Several years ago, the U.S. Navy agreed to pay Northrop Grumman, which owns the Newport News (Virginia) shipyard, $454 million to refurbish the carrier USS Enterprise. Northrop Grumman, because the Enterprise was built at their Newport News yards in the late 1950s, had a sole source contract to do all major maintenance. The 16 months this work was to take would enable Enterprise to serve two more years, before retiring in 2013.

Northrop Grumman ran into problems with the Enterprise refurb, and has come back for more money eleven times. So far. Currently, the job will cost $655 million, and take 21 months. Begun in May, 2008, the work is supposed to be finished this month.

Such situations are common, particularly with sole source contracts. There are also, according to the navy, more problems in the Newport News yards, than at the ones in Pascagoula, Mississippi. Since 2001, Northrop Grumman has owned both yards. But before, and after, the purchase, Pascagoula always had a different "corporate culture". That said, Pascagoula has had problems as well, just not as bad as Newport News.

The U.S. Navy is unhappy with the few commercial shipyards that produce its warships. But efforts to get the yard owners to shape up have not worked. At least not yet.

 

 


Article Archive

Leadership: Current 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 


X

ad
0
20

Help Keep Us Soaring

We need your help! Our subscription base has slowly been dwindling. We need your help in reversing that trend. We would like to add 20 new subscribers this month.

Each month we count on your subscriptions or contributions. You can support us in the following ways:

  1. Make sure you spread the word about us. Two ways to do that are to like us on Facebook and follow us on Twitter.
  2. Subscribe to our daily newsletter. We’ll send the news to your email box, and you don’t have to come to the site unless you want to read columns or see photos.
  3. You can contribute to the health of StrategyPage. A contribution is not a donation that you can deduct at tax time, but a form of crowdfunding. We store none of your information when you contribute..
Subscribe   Contribute   Close