B&W positioned for $960 million in new defense contracts
Newest order brings potential for $2.66 billion in U.S. government contracts for 2007-2010 in Nuclear Operations Group
LYNCHBURG, Va., October 16, 2008 The Babcock & Wilcox Company (B&W) has received a new award for the manufacture of nuclear components in support of U.S. defense programs. Under this award, the contracts for 2008 are valued in excess of $230 million. They are the initial contracts under a negotiated set of orders that, if executed, would total more than $960 million between 2008 and 2010.
These awards are in addition to a $1.7 billion series of contracts that B&W previously announced for 2007 to 2009. If the future orders are placed, the total value of the awards for the period of 2007 through 2010 would be approximately $2.66 billion.
The contracts employ a multiple-award approach over a number of years. This structure is designed to give the U.S. government cost predictability while providing B&W with additional financial incentives based on performance.
"This multiple-award structure provides additional opportunities to load level our manufacturing facilities to improve efficiency and scheduling activities," said John A. Fees, Chief Executive Officer of McDermott International, B&W's parent company. "Both parties will benefit from improved efficiencies to control cost and schedule. All of us at the company are proud of our work for the government, and we look forward to continuing to provide products of the highest quality."
The work that is funded by these contracts is conducted by B&W's Nuclear Operations Group. Headquartered in Lynchburg, Virginia, the Group's other locations include Barberton, Ohio; Mount Vernon, Indiana; and Euclid, Ohio.
The Babcock & Wilcox Company (B&W), a major operating group of McDermott International, Inc. [NYSE: MDR], is a leader in advanced energy technology innovation and service, primarily in nuclear and fossil power. Providing quality products and technical services to commercial and government customers, B&W is focused on issues such as energy efficiency, clean air, global market competitiveness, and safe and secure resolution for nuclear waste. B&W has locations worldwide and employs more than 20,000 people. The company is located on the Internet at www.babcock.com.
Public Affairs Manager
The Babcock & Wilcox Company
800 Main Street, Lynchburg, Va.