Summaries of Navy Contracts for the Construction of Naval Vessels on the Basis of Cost-Plus-a-Fixed-Fee.
January 27, 1941.

The Navy Department has entered into the following contracts for the construction of naval vessels:

(1) Contract NOd-1432, with the Federal Shipbuilding and Dry Dock Company, dated July 1, 1940, for the construction of two (2) destroyers at its plant at Kearny, New Jersey, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $545,000.00 per vessel payable to the contractor, being $7,785,715.00. (2) Contract NOd-1498, with the Cramp Shipbuilding Company, dated October 29, 1940, for the construction of six (6) light cruisers at its plant at Philadelphia, Pennsylvania, on a. cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $1,063,080.00 per vessel payable to the contractor, being $17,730,000.00.

(3) Contract NOd-1602, with the Seattle-Tacoma Shipbuilding Corporation, dated September 9, 1940, for the construction of five (5) destroyers at its plant at Seattle, Washington, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $329,790.00 per vessel payable to the contractor, being $5,496,500.00. A change in the contract was authorized on January 18, 1941, adding five (5) destroyers so that ten (10) destroyers are now to be constructed under the contract.

(4) Contract NOd-1504, with the Federal Shipbuilding and Dry Dock Company, dated September 9, 1940, for the construction of two (2) destroyers at its plant at Kearny, New Jersey, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $284,000.00 per vessel payable to the contractor, being $4,057,100.00.

(5) Contract NOd-1505, with the Federal Shipbuilding and Dry Dock Company, dated September 9, 1940, for the construction of two (2) destroyers at its plant at Kearny, New Jersey, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $308,000.00 per vessel payable to the contractor, being $4,400,000.00.

(6) Contract NOd-1510, with the Gulf Shipbuilding Corporation, dated September 9, 1940, for the construction of four (4) destroyers at its plant at Chickasaw, Alabama, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $410,191.00 per vessel payable to the contractor, being $6,836,520.00.

(7) Contract NOd-1611, with the Seattle-Tacoma Shipbuilding Corporation, dated September 9, 1940, for the construction of fifteen (15) destroyers at its plant at Seattle, Washington, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $410,191.00 per vessel payable to the contractor, being $6,836,520.00.

(8) Contract NOd-1512, with the Consolidated Steel Corporation, Ltd., dated September 9, 1940, for the construction of twelve (12) destroyers at its plant at Orange, Texas, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $410,191.00 per vessel payable to the contractor, being $6,836,520.00.

(9) Contract NOd-1514, with the Manitowoc Shipbuilding Company, dated September 9, 1940. for the construction of ten (10) submarines at its plant at Manitowoc, Wisconsin, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel, exclusive of the fixed fee of $171, 000.00 per vessel payable to the contractor, being $2,850,000.00.

(10) Contract NOd-1515, with the Los Angeles Shipbuilding and Dry Dock Corporation, dated September 9,1940, for the construction of a repair ship at its plant at San Pedro, California, on a cost-plus-a-fixed-fee basis, the estimated cost of the vessel, exclusive of the fixed fee of $825,000.00 per vessel payable to the contractor, being $13,750,000.00.

(11) Contract NOd-1622, with Moore Dry Dock Company, dated December 30, 1940, for the construction of two (2) submarine tenders and five (5) submarine rescue vessels at its plant at Oakland, California, on a cost-plus-a-fixed-fee basis, the estimated cost per vessel for the submarine tenders, exclusive of the fixed fee of $780,000.00 per vessel payable to the contractor, being $13,000,000.00, and the estimated cost per vessel for the submarine rescue vessels, exclusive of the fixed fee of $114,000.00 per vessel payable to the contractor, being $1,900,000.00.

Each of the above-mentioned contracts contains provisions for the suspension, termination or cancellation of the contract in order to safeguard the Government's interests in the event that the public exigency requires that any such action be taken. An equitable basis for settlement of the contract is provided in the case of each of these contingencies.

The estimated cost and the fixed fee payable to the contractor under each contract are subject to adjustment for changes in the plans and specifications which may be ordered by the Navy Department during the course of construction.

S. M. Robinson, Chief of Bureau.
[F. R.. Doc. 41-766: Filed, February 1, 1941; 9:48 a. m.]