Navy Contracts Totaling $477 Million Awarded To Avondale Shipyards

The U.S. Navy recently exercised its option to have Avondale Shipyards, Inc., a subsidiary of Ogden Corporation, construct two additional fleet oilers at a total cost of $231.9 million. The Navy also awarded Avondale a $166- million contract to build a landing ship dock.

The Navy has options to award Avondale up to four additional LSDs, two through January 1985 at a total cost of $304 million, and two through January 1986 at a total cost of $297 million. Both the fleet oiler and the landing ship dock contracts provide for escalation related to cost of labor and materials.

In November 1982 the Navy awarded Avondale a contract to build a first fleet oiler, scheduled for delivery in early 1986, and subsequently exercised an option for the construction of a second oiler for mid-1986 delivery. The two additional oilers awarded recently will be delivered at 4-month intervals after the mid-1986 delivery. Construction of the first oiler will begin in 1984 at Avondale's main yard near New Orleans.

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