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 Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Daewoo Shipbuilding: $1.4 bln order Cancelled

Cancelled order part of Statoil's Bressay project. South Korea's Daewoo Shipbuilding & Marine Engineering Co Ltd on Friday said a 1.58 trillion won ($1.41 billion)

Asia Tankers-VLCC Rates Falter on Oil, Tanker Supplies

MidEast, West Africa rates hit 11-month low. Freight rates for very large crude carriers (VLCCs), which hit an 11-month low this week, could slide further next

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Shipbuilding

Damen PSV for Wilson Sons Ultratug Offshore

Wilson Sons Ultratug Offshore, a joint venture between Wilson Sons and the Chilean maritime services provider Ultramar, has taken delivery of a Damen PSV 5000.

VARD Bags Three-vessel Contract

Vard Holdings Limited (“VARD”), one of the major global designers and shipbuilders of offshore and specialized vessels secured a contract for the design and construction

ATB Design Comes of Age

The emerging trend of marrying the design of an articulated tug and barge (ATB) to a particular propulsion system to maximize efficiencies of that system has, of late,

Navy

Det Norske to Restore Production at Alvheim after Leak

Norwegian oil firm Det norske said it expected to reach full production at its Alvheim FPSO (floating storage, offloading and producing unit) overnight after a leak,

This Day In Naval History: July 28

1861 - During the Civil War, the frigate, USS St. Lawrence, spots a schooner flying English colors and gave chase. Some four hours later, as she is overhauling the schooner,

SNMCMG2 Completes Third Black Sea Deployment

Standing NATO Mine Countermeasures Group 2 (SNMCMG2) has completed its third deployment into the Black Sea under the command of Captain Ramazan Kesgin, Turkish Navy.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Pod Propulsion Port Authority 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: 0.1064 sec (9 req/sec)