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 July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Canada Commissions Study on Underwater Noise

Green Marine has signed a nine-month contract with Transport Canada to provide insight on underwater noise generated by shipping and its effects on marine life, along with potential solutions.

Asia-Europe Box Rates Down 23 pct

Shipping freight rates for transporting containers from ports in Asia to Northern Europe dropped 22.8 percent to $400 per 20-foot container (TEU) in the week ended last Friday,

RI Offshore Project Boosts US Wind Entry

Rhode Island's Deepwater Wind will start installing the foundations for North America's first offshore wind farm on Monday, a milestone the company says could pave

Shipbuilding

ABS Grants AIP for Jensen’s LNG ATB Design

A Jensen Maritime-designed, liquefied natural gas (LNG)-bunkering articulated tug-barge (ATB) has been granted approval in principle (AIP) by classification society American Bureau of Shipping (ABS).

SENER Presents on History of Ship Design

The COMPIT annual edition took part this year from May 11-13 in Ulrichshusen, Germany, with the participation of SENER. This event is an International Conference

New Tanker Delivered to Ardmore Shipping

25,000 DWT IMO 2 product and chemical tanker ship, Ardmore Chinook, joins Ardmore fleet   Ardmore Shipping Corporation announced that its latest newbuild tanker vessel,

Navy

Chinese Navy Plays Down S. China Sea Exercises

The Chinese navy played down recent military drills in the South China Sea and criticised other countries for "illegally" occupying islands in the area, the

U.S. 3rd Fleet Shifts Command

Vice Adm. Nora Tyson relieved Vice Adm. Kenny Floyd as commander, U.S. 3rd Fleet during a change of command and retirement ceremony held on Nimitz-class aircraft

USN, RSN Achieve New Milestones During CARAT 2015

The U.S. Navy and Republic of Singapore Navy completed the 21st annual Cooperation Afloat Readiness and Training (CARAT) Singapore after 11 days of comprehensive training both at sea and ashore,

 
 
Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1910 sec (5 req/sec)