THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, May 23, 1995 TAG: 9505230279
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY CHRISTOPHER DINSMORE, STAFF WRITER
LENGTH: Short : 36 lines
Norshipco has won a Navy contract to repair and maintain three Norfolk-based amphibious warships during the next five years.
The ``phased maintenance'' contract will give the Norfolk shipyard a stable base of work on which to build until 1999.
Norshipco, which employs nearly 2,900, is the largest privately owned shipyard in South Hampton Roads. Like other shipyards in the region, Norshipco suffered as the Navy cut back from Cold War spending levels. Employment fell from 3,500 four years ago to little more than 1,000 last summer.
But the shipyard has bounced back with a combination of military and commercial ship repair work. ``We're busy and we're hiring again,'' said Ernest C. Reilly, Norshipco vice president of contract administration.
The new contract is for the routine maintenance of three dock landing ships homeported at Little Creek Naval Amphibious Base. The vessels - Gunston Hall, Whidbey Island and Tortuga - will rotate into the shipyard on the Elizabeth River on a regular schedule.
The contract, awarded by the Naval Sea Systems Command, was valued at $24.2 million, but could be worth more or less, Reilly said.
Norshipco will perform work on the warships on a ``cost-plus'' basis. That means it will be paid for its expenses plus a set margin of profit.
Norshipco has two other Navy phased maintenance contracts, Reilly said. One is for the maintenance of three Norfolk-based fleet oilers; the other is for the maintenance of older dock landing ships and amphibious transport dock ships. by CNB