Modification Contract News

HII’s Ingalls Shipbuilding division on Monday announced  it has completed acceptance trials in the Gulf of Mexico for amphibious transport dock Richard M. McCool Jr. (LPD 29), the final Flight I transition ship before Ingalls moves into serial production of the LPD Flight II line.The Ingalls’ Test and Trials team spent several days with the U.S. Navy’s Board of Inspection and Survey running the ship at full power and through steering maneuvers. The team will now complete final finish work on the San Antonio-class ship in preparation for delivery to the U.S.

Austal Limited (Austal) (ASX:ASB) has been awarded a US$11,239,032 cost-plus-fixed-fee contract modification from the U.S. Navy to provide emergent availability planning and full ship shock trials (FSST) support for tests to be conducted on Littoral Combat Ship USS JACKSON (LCS 6). Specifically, Austal USA will plan for and conduct any “in-between shot” repairs required during the FSST event(s), repair any damage sustained during the FSST period and coordinate the removal of FSST testing equipment and instrumentation following completion of the trials. The FFST comprise a series of tests designed to demonstrate the ship’s ability to withstand the effects of nearby underwater explosions and retain required capability.

Austal USA was awarded a $14 million Littoral Combat Ship contract modification by the U.S. Navy to conduct special studies and analyses, the Navy announced this week. This is the second $14 million LCS modification contract for Austal USA this month. This award is an option exercised by the Navy to modify the original LCS 10-ship block-buy contract to allow for continued review of the program. “Our workforce is strong, the production line is hot, and our LCS program has a great deal of momentum right now,” said Austal USA President Craig Perciavalle. Austal will provide engineering and design services to reduce acquisition and lifecycle costs for the Independence-variant LCS. The company was awarded $14.656 million in LCS modifications, Mar.

General Dynamics NASSCO, a business unit of General Dynamics has been awarded a $36.4 million contract for maintenance, modernization, and repair of the USS Mitscher (DDG 57). "This award is a testament of the hard work by the General Dynamics NASSCO team and the collective effort to reduce costs and improve our competitiveness through continuous process improvements," said Jeff Brooks, senior general manager at General Dynamics NASSCO-Norfolk. The work will be performed in Norfolk, Virginia, and is expected to be completed by March 2016. The contract has a total potential value of $40 million if all options are exercised.

Kleven’s Myklebust Verft in Gursken, Norway, has signed a modification contract with Ocean Yield ASA, a ship owning company with investments within oil-service and industrial shipping, to convert the Aker Wayfarer into a deepwater subsea equipment support vessel (SESV). The vessel is presently under long term charter with AKOFS Offshore. The modifications made at Myklebust Verft will enable the deepwater subsea equipment support vessel to install and retrieve deepwater subsea equipment; subsea trees and modules, including subsea structures and manifolds.

The US Department of Defense has awarded a Navy Mobile Landing Platform program modification contract to General Dynamics National Steel & Shipbuilding Co., San Diego, Calif. NASSCO has been awarded an $11,200,000 modification on a not-to-exceed basis to previously awarded contract (N00024-09-C-2229) to accomplish the detail design of Afloat Forward Staging Base (AFSB) modifications for the Mobile Landing Platform (MLP) program to support the construction of MLP 3 and MLP 4 which will be AFSB variants. Work will be performed in San Diego, Calif., and is expected to be completed by November 2013. Fiscal 2012 National Defense Sealift funds in the amount of $5,600,000 will be obligated at the time of award. Contract funds will not expire at the end of the current fiscal year.

Zhoushan COSCO Shipyard  contracted for modification and repair of CMA CGM container ships. Three French CMA CGM 8200TEU-series container ships have been docked at Zhoushan Shipyard for bulb bow modification involving 290 tons of steel-work as well as other routine hull repair work including 11,186 sq. metres of sanding and re-coating. Engine maintenance is being carried out and auxiliary energy-saving devices are also being installed. The COSCO shipyard says that last year CGM was pleased with work done on another of its vessels, leading to the 2013 signing of a further cooperation agreement between the two companies for modification and repair work.

U.S. Department of Defense awards a firm-price-fixed modification contract to General Dynamic for  maintenance & modernization of the submarine. General Dynamics Electric Boat Corp., Groton, Conn., is being awarded a $9,504,885 firm-fixed-priced modification to previously awarded contract (N00024-12-C-4301) for the execution work necessary to prepare and accomplish maintenance and modernization work of the fiscal 2013 dry-docking selected restricted availability of the submarine USS Hartford (SSN 768). This scope of work encompasses required maintenance activities necessary to maintain full unrestricted operation of the submarine, as well as upgrades and modernization efforts required to ensure the submarine is operating at full technical capacity.

Aker Solutions wins a topside modification contract by Statoil to increase oil recovery at Gullfaks South. Estimated contract value is NOK 180 million. The main object of the project is to deliver topside modification for tie-in of two new templates, located at Gullfaks South, to Gullfaks A, plus topside modification for re-routing production from existing template D from Gullfaks A to Gullfaks C. Scope of work under the Gullfaks South increased oil recovery topside project includes engineering, procurement, construction, installation and commissioning assistance (EPCIc). "This will be a challenging and exciting job. It is an important assignment for Aker Solutions, which shows that we are competitive on jobs in all levels of the market.

Aker Solutions secures maintenance and modifications contract with BP Norway. BP has decided to extend the maintenance and modification contract with Aker Solutions, exercising an option in the existing agreement for the Ula, Valhall, Skarv, Hod and Tambar fields. Scope of work under the contract includes maintenance support services and brownfield modification projects covering engineering, procurement, fabrication and offshore installation. The contract currently employs approximately 200 people in Stavanger, 20 in Egersund and 300 in offshore rotation. Maintenance and modifications work will help to increase oil recovery rate and extend the life of BP's fields.

An additional type DDG 116 guided missile destroyer ordered from General Dynamics. General Dynamics (GD) has received a $663m modification contract from the US Navy for the construction of an additional Arleigh Burke-class guided missile destroyer, DDG 116. Powered by four gas-turbine propulsion plants, the 509ft-long destroyers have a displacement capacity of 9,500t, cruise at 30kts and are equipped with advanced sensors, and weapons systems to engage anti-ship missile threats.

The US Navy has awarded a million cost-plus-fixed-fee advance procurement modification contract to Huntington Ingalls Industries' (HII) Ingalls Shipbuilding division to provide long-lead materials for the 11th San Antonio-class (LPD 17) amphibious transport dock, LPD 27. The advance procurement contract for LPD 27 is the fourth to be awarded to the company, with the first contract awarded in October 2010. Under the latest $70m contract, Ingalls will provide long-lead-time materials including main engines and diesel generators and other equipment such as electrical switchboards…

BP has decided to extend the maintenance and modification contract with Aker Solutions, exercising a one year option in the existing agreement for the Ula, Valhall, Hod and Tambar fields. Work under the new option will last until April 2012. The contract value is estimated to be NOK 2-300 MNOK. The original maintenance and modification contract was signed in 2005. "We are very pleased that BP again demonstrates their trust in Aker Solutions. We look forward to continue our long term cooperation with BP"…

Aker Solutions has won a contract to build and install a new compressor module on the Statoil-operated Kristin platform in the Norwegian Sea. The contract value is approximately $151m. The purpose of the modification is to increase recovery from the field and accelerate production by adapting the platform to changes in reservoir pressure. Work starts immediately, with a scheduled delivery in Q1 2014. "We are very pleased to win the Kristin LPP contract. This project is in line with our strategy to be the preferred life-of-field partner through assisting our customers in executing their increased recovery projects," said president for maintenance, modifications and operations in Aker Solutions, Stian Vemmestad.

Norske Shell awarded Aker Kvaerner a maintenance and modification contract for the Draugen platform and the Ormen Lange plant on the north-western coast of Norway. The latter will be operational during autumn 2007. The contract period is five years, with option for renewals every two year thereafter. The total contract value is between $178-296 million, depending on the modification scope at the Ormen Lange plant. The contract has been signed with Aker Kvaerner Offshore Partner. Aker Kvaerner Elektro and Aker Moere Montasje will also contribute in the execution. In addition, Linjebygg Offshore AS will be subcontractor for insulation, scaffolding and surface treatment.

Bollinger Shipyards has been granted a $5.1 million contract from the U.S. Navy to modify three Patrol Coastal ships (PC) of the Cyclone Class. The company has an option on a fourth PC, which would bring the total contract value to 6.7 million. The first vessel, Shamal, is scheduled to arrive in early December. The remaining ships, Zephyr and Hurricane, will follow later.

General Dynamics Electric Boat signed a contract modification with the Navy to modify Jimmy Carter, the third and final Seawolf-class submarine. The modification, which is valued at about $887 million - will accommodate advanced technology for naval special warfare, tactical surveillance and mine warfare operations. The modification will entail alterations to the basic Seawolf design, specifically in ballast control, mission management spaces, and various services. The modification also features the formulation of a flexible ocean interface, referred to as the "wasp waist," that will allow the Navy to deploy and recover various payloads without having to use torpedo tubes. The contract modification changes the submarine's delivery date from December 2001 to June 2004.