Post by ferryfast admin on Mar 17, 2012 13:43:34 GMT -5
Austal USA receives 2 more contracts to build littoral combat ships for Navy
Updated: Friday, March 16, 2012, 6:14 PM
April M. Havens, The Mississippi Press
blog.al.com/press-register-business/2012/03/austal_usa_receives_2_more_con.html
MOBILE, Alabama -- Austal USA in Mobile has received a $691.6 million contract modification to build two more littoral combat ships, the U.S. Navy announced Friday.
The award will fund the shipyard's fifth and sixth LCSs.
The vessels -- meant for minesweeping, submarine-hunting, anti-piracy efforts and special forces operations -- represent the third funding increment to be awarded under a 10-ship, $3.8 billion deal that Austal secured in December 2010.
Austal delivered its first vessel in the program, USS Independence (LCS 2), in January 2010. That ship is currently undergoing test and trials in Mayport, Fla., according to the Navy.
Coronado (LCS 4) is under construction at the Mobile River yard and is slated for delivery early next year. Jackson (LCS 6) is in the early stages of construction, and Montgomery (LCS 8) is in pre-production.
Austal officials said Friday they could not comment on the new award under rules of the Australian Stock Exchange, where its parent company, Austal Ltd., is traded.
In an attempt to drive down LCS prices early in the program, the Navy led Austal and a Lockheed Martin Corp.-led team to bid against each other.
The shipbuilders bid low enough that the Navy ultimately decided to buy 20 ships, or two ships per year from each company, during fiscal years 2010-2015. Each award, however, is subject to availability of appropriations.
The prices for the modifications announced Friday were determined based on those competitive LCS dual block buy contracts awarded in 2010.
Because of the 10-ship deal, Austal leaders have said they expect to invest about $160 million in facility upgrades and increase employment from 1,800 to about 4,000 over the next few years.
Also on Friday, Lockheed also received $715 million for two ships, which will be built at Marinette Marine Corp. in Marinette, Wis.
"The Navy is successfully driving down costs in the program," program executive officer Rear Adm. James Murdoch said in a news release.
"We are continuing to execute the dual award strategy for these ships," he said. "Efforts to stabilize design, improve production planning, invest in shipbuilder improvements and leverage long-term vendor agreements -- all within the framework of a competitive fixed-price contract -- have returned this program to the level of affordability necessary for the Navy to move forward with construction at efficient rates in support of the 55-ship LCS requirement."
Earlier this week, Austal leaders announced retired Rear Adm. John "Dugan" Shipway was appointed as an outside director on the company's board of directors.
Shipway, who retired in March 2009 as president of General Dynamics Bath Iron Works, served 35 years in the Navy.
"As we grow to become a major naval shipyard, we look forward to tapping into his many years of shipbuilding expertise," Austal USA President and COO Joe Rella said.
.
Updated: Friday, March 16, 2012, 6:14 PM
April M. Havens, The Mississippi Press
blog.al.com/press-register-business/2012/03/austal_usa_receives_2_more_con.html
MOBILE, Alabama -- Austal USA in Mobile has received a $691.6 million contract modification to build two more littoral combat ships, the U.S. Navy announced Friday.
The award will fund the shipyard's fifth and sixth LCSs.
The vessels -- meant for minesweeping, submarine-hunting, anti-piracy efforts and special forces operations -- represent the third funding increment to be awarded under a 10-ship, $3.8 billion deal that Austal secured in December 2010.
Austal delivered its first vessel in the program, USS Independence (LCS 2), in January 2010. That ship is currently undergoing test and trials in Mayport, Fla., according to the Navy.
Coronado (LCS 4) is under construction at the Mobile River yard and is slated for delivery early next year. Jackson (LCS 6) is in the early stages of construction, and Montgomery (LCS 8) is in pre-production.
Austal officials said Friday they could not comment on the new award under rules of the Australian Stock Exchange, where its parent company, Austal Ltd., is traded.
In an attempt to drive down LCS prices early in the program, the Navy led Austal and a Lockheed Martin Corp.-led team to bid against each other.
The shipbuilders bid low enough that the Navy ultimately decided to buy 20 ships, or two ships per year from each company, during fiscal years 2010-2015. Each award, however, is subject to availability of appropriations.
The prices for the modifications announced Friday were determined based on those competitive LCS dual block buy contracts awarded in 2010.
Because of the 10-ship deal, Austal leaders have said they expect to invest about $160 million in facility upgrades and increase employment from 1,800 to about 4,000 over the next few years.
Also on Friday, Lockheed also received $715 million for two ships, which will be built at Marinette Marine Corp. in Marinette, Wis.
"The Navy is successfully driving down costs in the program," program executive officer Rear Adm. James Murdoch said in a news release.
"We are continuing to execute the dual award strategy for these ships," he said. "Efforts to stabilize design, improve production planning, invest in shipbuilder improvements and leverage long-term vendor agreements -- all within the framework of a competitive fixed-price contract -- have returned this program to the level of affordability necessary for the Navy to move forward with construction at efficient rates in support of the 55-ship LCS requirement."
Earlier this week, Austal leaders announced retired Rear Adm. John "Dugan" Shipway was appointed as an outside director on the company's board of directors.
Shipway, who retired in March 2009 as president of General Dynamics Bath Iron Works, served 35 years in the Navy.
"As we grow to become a major naval shipyard, we look forward to tapping into his many years of shipbuilding expertise," Austal USA President and COO Joe Rella said.
.