US Navy funds Austal-led team to build two ships

Addi­tion­al con­tracts affirm com­mit­ment to the Lit­toral Com­bat Ship (LCS) Pro­gram
Austal’s order back­log has grown by US$691 mil­lion 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 US$3.5 bil­lion.

Reflect­ing Austal’s grow­ing stature in naval ship­build­ing, Austal USA now holds con­firmed con­tracts for 14 U.S. Navy ships while its Aus­tralian oper­a­tion has a con­tract to build and sup­port 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 Iron Works 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’s Chief Exec­u­tive Offi­cer Andrew Bel­lamy 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.

“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 the 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 Bel­lamy 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 Bel­lamy said. “The LCS and JHSV plat­forms will con­tin­ue fuelling com­pa­ny growth for a long time to come.”

Source:
Austal

More news and arti­cles can be found on Face­book and Twit­ter.

Fol­low GlobalDefence.net on Face­book and/or on Twit­ter

Team GlobDef

Team GlobDef

Seit 2001 ist GlobalDefence.net im Internet unterwegs, um mit eigenen Analysen, interessanten Kooperationen und umfassenden Informationen für einen spannenden Überblick der Weltlage zu sorgen. GlobalDefenc.net war dabei die erste deutschsprachige Internetseite, die mit dem Schwerpunkt Sicherheitspolitik außerhalb von Hochschulen oder Instituten aufgetreten ist.

Alle Beiträge ansehen von Team GlobDef →