Northrop gets potential $5.1 billion U.S. carrier deal

WASHINGTON (Reuters) - Northrop Grumman Corp (NOC.N) won a contract worth up to $5.1 billion over seven years to complete the design and build the future Gerald R. Ford, the first in a new class of U.S. Navy aircraft carriers, the Defense Department said on Wednesday.

Work on the nuclear-powered carrier will be performed in Newport News, Virginia, and is expected to be wrapped up by September 2015, the Pentagon said in its daily contract summary.

Advance construction began in 2005 under a separate Northrop contract valued at $2.7 billion, the company said in a statement.

"This contract award is an important and historic milestone for our company, our Navy and our country," said Matt Mulherin, vice president and general manager for Northrop Grumman Shipbuilding's Newport News operations.

The ship represents the Navy's first major investment in aircraft carrier design in more than 30 years and features big improvements on the 1960's Nimitz-class design, the Navy said in a separate statement.

Enhancements being incorporated into the design include flight deck changes, improved weapons handling systems, advanced gear to facilitate landings and others changes to boost aircraft sortie rates.

The ship will also include a new nuclear power plant, increased electrical power generation capacity and reduced workloads for sailors, translating to a smaller crew size and lower operating costs for the Navy.

The keel is scheduled to be laid in the fall of 2009 and the ship is due to be delivered to the Navy in 2015. About one third of the ship's 1,200 structural units are currently under construction, Northrop said.

The Navy plans to build 11 Ford-class aircraft carriers with construction projected to continue through 2058.

The Defense Department said the contract included an option that, if exercised, would bring its total value to $5.1 billion. The contract was not opened to bids, the department said.

(Reporting by Jim Wolf; Editing by Andre Grenon)