News Review: Austal submits final multi-vessel LCS proposal to US Navy | ADM Sep 2010

Austal has submitted its best and final offer to the US Navy for a 10-vessel Littoral Combat Ship (LCS) contract.

A decision was expected sometime in August.

If Austal is awarded the contract, this will create more than 2,000 new jobs at the company’s shipyard in Mobile, Alabama, adding to Austal’s current US workforce of 1,500.

In October 2005 Austal, as a part of the General Dynamics LCS team, was one of two bidders awarded a landmark construction contract for one of two LCS Flight 0 ships, USS Independence (LCS 2), followed by a contract to build a second Independence-class LCS Flight 0 ship, Coronado (LCS 4), in May 2009.

The other successful bidder was a consortium led by Lockheed Martin. Austal is now the prime contractor bidding for the 10-ship program plus five additional sets of Selected Ship System Equipment for the second source shipbuilder.

While General Dynamics Bath Iron Works remains the prime contractor on Coronado (LCS 4), Austal and General Dynamics Bath Iron Works revoked their current teaming arrangement in February 2010 to allow General Dynamics Bath Iron Works to compete for the proposed “second source” competition for the winning design.

However, another Austal partner, General Dynamics Advanced Information Systems, will continue to make a major contribution in delivering the non-proprietary open-architecture computing environment that forms the backbone of this flexible mission LCS.

Austal USA President and COO, Joe Rella commented, “Austal USA has come a long way from first arriving in Mobile, the silicon valley of shipbuilding, 10 years ago.

“By leveraging the shipbuilding experience gained in Australia, the lessons learned from the LCS and Joint High Speed Vessel programs, our investment in facilities, combined with the best shipbuilders in the world, we have created the critical mass necessary to provide the lowest risk and best valued solution as prime contractor for this program.

“Without a doubt, we offer the most innovative, efficient, and capable vessel to the Navy.”

Austal’s shipyard in Mobile, Alabama, has under construction the second Flight 0 Independence Class LCS, Coronado (LCS 4) and the first of three contracted 103-metre Joint High Speed Vessels, Spearhead (JHSV 1), part of a joint contract between the US Army and US Navy (see box).

MEANWHILE, Austal has announced it will close its Tasmanian shipyard this month to align its boat-building facilities with market demand.

The site is home to 116 staff but Head of Operations Andrew Bellamy says there is less demand for smaller ships which it can build more efficiently at its West Australian shipyard.

“Based on Austal’s current assessment of the global market, the forecast demand for smaller passenger ferries and small patrol boats can be fully serviced out of the Henderson facilities in Western Australia.”