U.S. Navy Funds Two More Austal-Built LCS

Monday, March 19, 2012
Austal USA’s order backlog has grown by $691 million dollars as a result of two additional Littoral Combat Ship (LCS) contract options being exercised by the United States Navy. The contract options fund construction of the Gabrielle Giffords (LCS 10) and Omaha (LCS 12), the third and fourth ships in the 10 ship block buy award made to an Austal-led team in December 2010. That 10 ship program is potentially worth over $3.5 billion.
Reflecting its growing stature in naval shipbuilding, Austal USA now holds confirmed contracts for 14 U.S. Navy ships while Austal’s Australian shipyard expects to build eight patrol boats for the Australian Customs and Border Protection Service. 
The U.S. Navy work includes contracts for nine Joint High Speed Vessels (JHSVs), two of which were confirmed in February. It also includes the Coronado (LCS 4) which Austal was contracted to build as part of a General Dynamics Bath Ironworks team prior to taking over as the prime contractor for the 10 ship LCS award. LCS 4 and the first JHSV, USNS Spearhead, are currently being prepared for sea trials, with three other ships currently under construction in Austal’s Mobile, Alabama shipyard.  
Austal USA President and Chief Operating Officer Joe Rella said the company’s U.S. Navy programs provide predictable revenue and workload for years to come.
“The LCS and JHSV programs alone are likely to generate nearly $900 million in revenue per year for the next few years. With series production on both ship classes now underway, we can focus on achieving higher production efficiency and bringing our Navy customer improved cost and schedule performance,” he said.
Mr Rella said “The LCS award called for two ships to be contracted by the end of March this year, and each of the next three years. While these options were expected, it is still pleasing to see the contracts executed, particularly in a period when U.S. government budget is under pressure.
“Looking ahead, we can now focus on the Defense budget request for the next fiscal year which foreshadows the award of our next two LCSs and our tenth Joint High Speed Vessel. The Navy’s effort to continue procuring these vessels demonstrates the value the U.S, military sees in our platforms,” he said.
Mr Rella noted that the Secretary of Defense, Leon E. Panetta, had restated the importance of the LCS when announcing major Budget decisions in January.
“Secretary Panetta said the Navy was protecting what he described as its ‘highest-priority and most flexible ships’ and included Littoral Combat Ships in that category,” he said. 
More recently Secretary of the Navy, Ray Mabus, reaffirmed the Navy’s intention to acquire 55 LCSs. 
In testimony to the House Appropriations Subcommittee on Defense on 1 March SECNAV Mabus stated: “I think the LCS is clearly going to be one of the backbones of the fleet as we go forward. We are committed to buying over 55 of these very capable ships.”
He reaffirmed the 55 ship plan to the Senate Appropriations Subcommittee on Defense on 7 March, adding that “we’re very pleased with the shipyards that are building them, we’re very pleased with the product that’s coming out.”
“These are very positive signs for the LCS program’s long term future and for Austal’s prospects in securing additional work beyond the current 10 ship award,” Mr Rella said. “The LCS and JHSV platforms will continue fuelling company growth for a long time to come.”
 
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Wärtsilä, Diesel United Renew Pact

Wärtsilä and Diesel United Ltd in Japan have signed a ten-year renewal of their co-operation agreement for the sale, manufacturing and servicing of Wärtsilä low-speed marine engines.

Delta "T" Hooks for Offshore Customer

Gaining further ground into the offshore crane market, Delta "T" Systems supplied Cranston Eagle hooks to crane manufacturer Appleton Marine, Inc.   These cranes

China to Import 335 MT of Naphtha, Wants More

China is set to import more than 335,000 tonnes of naphtha and diesel, rare moves for the world's no. 2 oil consumer given it has been self-sufficient at meeting domestic oil product demand,

Shipbuilding

Equinox Class Scrubber Systems Receive Certification

Algoma Central Corporation (“Algoma”), the largest Canadian shipowner and operator of domestic Great Lakes vessels announces that it has received all requisite

Arctic Oil: Bourbon to Enter Arctic Market in 2016

Bourbon plans to enter the growing Arctic Offshore market in 2016 with a new Anchor Handling Tug Supply (AHTS) vessel built by the Vard shipyard. This AHTS (Anchor

Mitsubishi Exits Cruise Business; Books $357m Loss

Mitsubishi Heavy Industries, Ltd. (MHI) announced its decision to book an extraordinary loss from its cruise ship business in the company's consolidated financial

Navy

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

Libyan Government: Ports, Oil Fields Safe

Libyan oil ports and fields are safe and under government control, the country's interior minister said on Friday after visting the eastern Brega port. "This

Keel Laid, Fabrication Started on 2 Navy Warships

This week, General Dynamics Bath Iron Works celebrated two milestone events for the Arleigh Burke-class program. On October 30, Bath Iron Works held a keel laying

 
 
Maritime Security Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1445 sec (7 req/sec)