Work is underway at the former Hunter's Point Naval Shipyard in San Francisco, California, to dismantle and dispose of the ex-USS Lockwood. The $3.7 million contract is one of four competitive contracts awarded by the Navy to bidders under a pilot program to develop and test environmentally sound and cost effective methods for disposing of excess naval ships. The disposal of the ex-USS Lockwood is expected to be completed within approximately six months.

On completion of the pilot program, SDR expects to submit bids to scrap additional ships under the contract. At present, the United States has an inactive fleet of over 200 Navy, Coast Guard, and Maritime Administration ships located at various Inactive Ships Maintenance Facilities around the country. SDR is a joint venture between Earth Tech, Inc., and Ship Remediation and Recycling, Inc., a subsidiary of VSE Corporation. Additional subcontractors participating in the SDR pilot program include Astoria Metal Corporation, Energetics Incorporated, John J. McMullen Associates, Inc., and Strategic Procurement Services, Inc.