1. Contract ID Code   Page 1 of 2 Pages
AMENDMENT OF SOLICITATION/MODIFICATION
 OF CONTRACT                                       L                         
--------------------------------------------------------------------------------
2. Amendment/Modification No.            3. Effective Date
          P00033                             See Block 16C
--------------------------------------------------------------------------------
4. Requisition/Purchase Reg. No.         5. Proj. No. (If applicable)
       N00024-99-FR-91007                        9-385P-91007 
--------------------------------------------------------------------------------
6. Issued By                 Code N00024 7. Administered By          Code N63124
NAVAL SEA SYSTEMS COMMAND
BUYER/SYMBOL: Jerry Clement   SEA 02225     SUPSHIP New Orleans 
2531 JEFFERSON DAVIS HWY                    New Orleans, LA 70142-5700
ARLINGTON VA 22242-5160
PHONE: Area Code (703)602-3102 ext 225
--------------------------------------------------------------------------------
8. Name and Address of Contractor             9a. Amendment of Solicitation No.
   (No., street, county, State and ZIP Code)
   DUNS NO:  144620747
Avondale Industries, Inc.
Shipyard Division                             9b. Dated (See Item 11)  
P.O. Box 50280
New Orleans, LA 70150-1967                   
                                             10a. Modification of Contract/
                                                  Order No. 
                                        [X]       N00024-93-C-2205  


                                             10b. Dated (See Item 13)
Cage Code 96204    Facility Code                  NOV 20 1992
--------------------------------------------------------------------------------
11. This Item Only Applies to Amendments of Solicitations
    The above numbered solicitation is amended as set forth in Item 14. The 
hour and date specified for receipt of Offers [ ]is [ ] is not extended.

Offers must  acknowledge  receipt of this  amendment  prior to the hour and date
specified in the solicitation as amended, by one of the following methods:

(a) By completing Items 8 and 15, and returning _ copies of the amendment, (b)  
By acknowledging receipt of this amendment on each copy of the offer submitted; 
or (c) By separate letter or telegram which includes a reference to the 
solicitation and amendment numbers. FAILURE OF YOUR ACKNOWLEDGEMENT TO BE 
RECEIVED AT THE PLACE DESIGNATED FOR THE RECEIPT OF OFFERS PRIOR TO THE HOUR AND
DATE SPECIFIED MAY RESULT IN REJECTION OF YOUR OFFER. If by virtue of this 
amendment you desire to change an offer already submitted, such change may be 
made by telegram or letter, provided each telegram or letter makes reference to 
the solicitation and this amendment, and is received prior to the opening hour 
and date specified.
--------------------------------------------------------------------------------
12. Accounting  and  Appropriation  Data (if  required)  SEE ATTACHED  FINANCIAL
    ACCOUNTING DATA SHEET
--------------------------------------------------------------------------------
13.               THIS ITEM APPLIES ONLY TO MODIFICATIONS  OF  CONTRACTS/ORDERS,
                  IT MODIFIES THE CONTRACT/ORDER NO. AS DESCRIBED IN ITEM 14.
--------------------------------------------------------------------------------
[ ] A. THIS CHANGE ORDER IS ISSUED PURSUANT TO: (Specify authority) THE CHANGES 
       SET FORTH IN ITEM 14 ARE MADE IN THE CONTRACT ORDER NO. IN ITEM 10A.
--------------------------------------------------------------------------------
[      ] B. THE  ABOVE  NUMBERED  CONTRACT/ORDER  IS  MODIFIED  TO  REPLACE  THE
       ADMINISTRATIVE  CHANGES (such as changes in paying office,  appropriation
       data, etc.)
--------------------------------------------------------------------------------
[X] C. THIS SUPPLEMENTAL AGREEMENT IS ENTERED INTO PURSUANT TO AUTHORITY OF:
         In Accordance with Options Clause 
--------------------------------------------------------------------------------
[ ] D. OTHER (Specify type of modification and authority)

--------------------------------------------------------------------------------
E. IMPORTANT:     Contractor ( ) is not, (x) is required to sign this document 
                  and return 2 copies to the issuing office.
--------------------------------------------------------------------------------
14. Description  of  Amendment/Modification  (Organize by UCF section  headings,
    including solicitation/contract subject matter where feasible.)




                            SEE ATTACHED



Except as provided herein, all terms and conditions of the document referenced 
in Item 9A or 10A, as heretofore changed, remain unchanged and in full force and
effect.
--------------------------------------------------------------------------------
15A. Name and Title of Signer (Type or print)
     E. C. MORTIMER
     V. P. GOV'T PROGRAMS
--------------------------------------------------------------------------------
15B. Contractor/Offeror                         15C. Date Signed

     /S/ E. C. MORTIMER                              2/19/98
    ----------------------------------------
    (Signature of person authorized to sign)
-------------------------------------------------------------------------------
16A. Name and Title of Contracting Officer (Type or Print)
     Jerry M. Clement
     Contracting Officer
-------------------------------------------------------------------------------
16B. United States of America                   16C. Date Signed

     By  /s/  JERRY M. CLEMENT                       18 DEC 1998
       -------------------------------------
        (Signature of Contracting Officer)
--------------------------------------------------------------------------------
NSN 7540-01-152-8070                                STANDARD FORM 30 (REV 10-83)
PREVIOUS EDITION UNUSABLE                           Prescribed by GSA
                                                    FAR (48 CFR) 53.243
<PAGE>
                                                    N00024-93-C-2205
                                                    P00033
                                                    PAGE 2 OF 2

Contract  N00024-93-C-2205  provides,  in part,  under Section B.3, Item(s) 0503
through 0509 that "the  Government may require the Contractor to furnish Item(s)
0503  through  0509 as  specified  in Section B, for delivery at the time(s) and
place(s) and at the applicable  price(s) set forth herein. The Option(s) will be
exercised,  if at all, by written or  telegraphic  notice  from the  Contracting
Officer sent within the time specified below:"

Pursuant to the above  provisions,  the Government  hereby exercises its options
for Items 0503 through 0509.

As a result of the above option exercise,  this modification  executes and fully
funds CLINS 0503 through 0509.

3. Funding in the amount of  $163,177,789.00,  which consists of $162,846,891.00
for CLIN 0503,  $307,713.00 for CLIN 0507 and $23,185.00 for CLIN 0510 is hereby
provided  in the  attached  Financial  Accounting  Data  Sheet to fully fund the
effort in CLINS 0503 through  0509  inclusive  of  administrative  modifications
A00162,  A00195,  A00196 and A00205 plus $9,242,000.00 for Item 0503 for payment
of compensation adjustment thereof.

4. The total amount  obligated on this  modification  is  $172,419,789.00  which
consists of  $163,177,789.00  for the target price as appropriate for Items 0503
through 0509 plus $9,242,000.00 for payment of compensation adjustment thereof.

Except as modified above,  all other terms,  conditions,  and prices of Contract
N00024-93-C-2205 remain unchanged and in full force and effect.

<PAGE>

                     FINANCIAL ACCOUNTING DATA SHEET-NAVY

<TABLE> 
<CAPTION> 
-----------------------------------------------------------------------------------------------------------------------------------
1. CONTRACT NUMBER (CRITICAL)           2.SPIN (CRITICAL)            3. MOD (CRITICAL)       4. PR NUMBER         

    N0002493-C-2205                                                     P00033                 N0002498FR91011
-----------------------------------------------------------------------------------------------------------------------------------
5.          6. LINE OF ACCOUNTING                                                                                                  
            -----------------------------------------------------------------------------------------------------------------------
            A.             B.               C.         D.     E.        F.      G.    H.          I.      J.      K.
 CLIN/SLIN      ACRN        APPROPRIATION   SUBHEAD      OBJ    PARM     RFM      SA      AAA       TT      PAA        COST CODE
             (CRITICAL)      (CRITICAL)    (CRITICAL)    CLA                           (CRITICAL)                  ----------------
                                                                                                                   PROJ        PDLI
                                                                                                                   UNIT  MCC   & SUF
------------------------------------------------------------------------------------------------------------------------------------
<S>              <C>          <C>            <C>        <C>      <C>    <C>      <C>    <C>        <C>    <C>      <C>    <C>  <C>
0503                                                                                                                               
0507                                                                                                                               
0510                                                                                                                                

                 CS           17X4557        8910       312      SA     385      0      068342     2D     000000   22252  200  0000

0503             CT           17X4557        8910       312      SA     385      0      068342     2D     000000   22252  291  0000

</TABLE> 

                                                                   PAGE 1 OF 1
<TABLE> 
<CAPTION> 
                                  NAVY INTERNAL
                         AMOUNT                        USE ONLY                  
                       (CRITICAL)                     REF DOC/ACRN               
------------------------------------------------------------------------------   
                     <S>                             <C>                           
                     $162,846,891.00
                         $307,713.00
                          $23,185.00
                     ---------------
                     $163,177,789.00                 N000240XAF0NDSF

                       $9,242,000.00                 N000240XAF0NDSF




                     ---------------
PAGE TOTAL           $172,419,789.00                                               
                     ---------------                                              
GRAND TOTAL          $172,419,789.00
------------------------------------------------------------------------------------
PREPARED/AUTHORIZED BY: HENRY W. FITZPATRICK, JR., PMS385P    COMPTROLLER APPROVAL:

 /S/ HENRY W. FITZPATRICK, JR.                                     /S/ V. JEFFERSON
                                                                       V. JEFFERSON 
                                                    DATE:  12/16/98   BY DIRECTION OF              
                                                                     CAPT V. H. ACKLEY             
                                                            DEPUTY COMMANDER/COMPTROLLER
</TABLE>