CNRD: Still a couple more YRBM loss projects likely ahead
In March 2022, we were awarded a contract by the U.S. Navy for the design and construction of a Yard, Repair,
Berthing and Messing (“YRBM”) barge, with options for an additional seven barges. The YRBM barges provide a
temporary home away from home and workplace for U.S. service men and women whose vessels are in port for repairs
and/or maintenance. The fixed-price contract, a small business set-aside, has a potential value of over $140 million if
all options are exercised by the U.S. Navy. In July 2022, the U.S. Navy exercised options for two additional YRBM
barges, in August 2022, exercised an option for the fourth YRBM barge and in June 2023 exercised an option for the
fifth YRBM barge, bringing the total contracts awarded through year-end 2023 to $89.4 million. The option for the
sixth YRBM barge was exercised in March 2024, bringing the total contracts awarded through the first quarter of 2024
to $107.3 million. We expect to deliver the first two YRBM barges to the U.S. Navy in the second half of 2024 and
four additional YRBM barges during 2025. Due to rapidly rising inflation since the time of our fixed-price bid, we
have recorded substantial forward losses on the first six vessels