Tuesday, September 27

Study: Home prices will suffer from closing

NEW ORLEANS - Realtors expect home values to fall by more than 20 percent on the west bank with the closing of the Avondale Shipyard. Most think home prices across the metropolitan area will also be affected. That's according to a study by the Avondale Shipyard Research Project, a consortium of four universities. During initial interviews at the Avondale Shipyard, workers immediately started expressing concerns about housing. Last year, Northrop Grumman said it would close the 5,000-worker shipyard in 2013. The yard, which is down to 3,000 workers, is now owned by Huntington Ingalls, which was spun off from Northrop Grumman. (Source: New Orleans Times-Picayune, AFL-CIO, 09/26/11)

Monday, September 26

Contract: Huntington Ingalls, $698M

Huntington Ingalls Inc., Pascagoula, Miss., is being awarded a $697,629,899 fixed-price-incentive contract for DDG 114 construction. On June 15, 2011, Huntington Ingalls was awarded a $783,572,487 fixed-price-incentive contract for DDG 113 construction. At the time of contract award, the Navy did not release the contract award amount because it was considered source selection information. For DDG 114 construction, significant amounts of work will be performed in Pascagoula, Miss.; Cincinnati, Ohio; Walpole, Mass.; York, Pa.; Charlottesville, Va.; Erie, Pa.; and Burns Harbor, Ind. Work is expected to be completed by July 2018. This contract was procured via a limited competition between Huntington Ingalls and Bath Iron Works. In addition, Bath Iron Works, Bath, Maine, is being awarded a $679,600,348 fixed-price-incentive contract for DDG 115 construction. This contract includes options for DDG 116 construction valued at $665,016,688. Significant amounts of work will be performed in Bath/Brunswick, Maine; Cincinnati, Ohio; Walpole, Mass.; Brunswick, Ga.; Coatesville, Pa.; Falls Church, Va.; Indianapolis, Ind.; York, Pa.; South Portland, Maine; Charlottesville, Va.; Tulsa, Okla.; Anaheim, Calif.; and Portland, Maine. Work is expected to be completed by August 2017. This contract was procured via a limited competition between Bath Iron Works and Huntington Ingalls. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 09/26/11)

Wednesday, September 21

Bids sought for maritime academy

PASCAGOULA, Miss. - Jackson County is inviting companies to bid on a $20 million maritime training facility to be built on Ingalls Shipbuilding property. On Monday, the Board of Supervisors and Port Authority's Board of Commissioners passed a joint resolution to advertise bid on the shipbuilding academy. The project, funded through a Hurricane Katrina community development block grant, will help Ingalls expand its two- to four-year apprentice program to about 1,000 students, leaders have said. Construction on the 76,000-square-foot facility is expected to take 18 months. (Source: MississippiPress, 09/20/11)

Wednesday, September 14

Navy to christen JHSV Spearhead

MOBILE, Ala. - The Navy will christen the Joint High Speed Vessel "Spearhead" Saturday at 10 a.m. CDT in Mobile. The 338 foot-long aluminum catamaran is being built by Austal USA. Spearhead and the nine other JHSVs under contract allow intra-theater transportation of troops, military vehicles, supplies and equipment. They can transport 600 short tons 1,200 nautical miles at an average speed of 35 knots and can operate in shallow-draft ports and waterways. JHSVs aviation flight decks can support day and night air vehicle launch and recovery operations. Sen. Jeff Sessions of Alabama will deliver the ceremony's principal address. (Source: DoD, 09/14/11)

Tuesday, September 13

Supervisors OK Ingalls tax break

PASCAGOULA, Miss. - Huntington Ingalls was granted 10-year exemptions Monday by Jackson County supervisors on a portion of its ad valorem taxes. The board unanimously granted two separate exemptions on some newer equipment and property at the shipyard, but the shipyard would still have to pay about 18 mills of the county’s 51.3 mills tax rate. Some tax funds must still be collected for school funds, roads and other expenses, supervisors said. (Source: Sun Herald, 09/12/11)

Friday, September 9

Ingalls gets cutter contract

Huntington Ingalls photo
PASCAGOULA, Miss. - Ingalls Shipbuilding has received a $482.8 million fixed-price-incentive-firm contract from the U.S. Coast Guard for the construction of a fifth National Security Cutter. Construction of the yet-to-be-named WMSL 754 will be done in Pascagoula facility. Ingalls has delivered the first three NSCs. Stratton (WMSL 752), the third of eight planned ships, was delivered to the Coast Guard on Sept. 2. Bertholf (WMSL 750) and Waesche (WMSL 751) have been commissioned. The start-of-fabrication milestone took place for the fourth cutter, Hamilton (WMSL 753), on Aug. 29. (Source: Huntington Ingalls via Globe Newswire, 09/09/11)

Austal rolls out JHSV

MOBILE, Ala. - Austal USA rolled its first Joint High-Speed Vessel out of the shed and onto a dry dock floating in the Mobile River. The high-speed transport was floated down to BAE Systems, where it is scheduled to be put into the water Sunday. The ship, slated to be delivered to the Navy early next year, is the first in a $1.6 billion, 10-ship contract awarded to Austal in 2008. The JHSV can carry soldiers and cargo at an average speed of 40 mph. Vehicles will be able to roll off even in shallow-water ports. (Source: Mobile Press-Register, 09/09/11)

Austal ship to visit Pensacola

The USS Independence (LCS 2), the littoral combat ship built at the Austal USA shipyard in Mobile, Ala., will visit Naval Air Station Pensacola, Fla., on Sept. 12 to conduct shipboard mission module testing over the next several weeks. Base officials say LCS 2, new generation ship with an aluminum trimaran design, will not be open for tours to the public and fishermen and boaters are reminded that a 5000-foot cordon around the ship will be enforced. (Source: Gosport, 09/09/11)

Wednesday, September 7

USS New York to be in NYC for 9/11

The amphibious transport dock ship USS New York will travel to New York City to participate in events honoring the victims and responders from the Sept. 11, 2001 terrorist attacks. The announcement was made by Secretary of the Navy Ray Mabus and New York City Mayor Michael R. Bloomberg. (Source: DoD, 09/06/11) Gulf Coast note: The ship's bow as made with steel recovered from the World Trade Center. It was built by Northrop Grumman shipyard in Avondale, La. The yard is now part of Huntington Ingalls Industries.

Thursday, September 1

Austal impresses Roughead

MOBILE, Ala. - Chief of Naval Operations Adm. Gary Roughead visited Austal USA's Mobile shipyard and called it "a model for others to follow." He said he's excited about the commitment and innovation that's gone into the shipyard, which he considers on the leading edge of shipbuilding. Austal, Mobile's largest industrial employer with more than 2,100 workers, is building littoral combat ships and high-speed transports and expects to double the size of its workforce in the next few years. (Source: Mobile Press Register, 08/31/11)

Ingalls starts work on new cutter

PASCAGOULA, Miss. - Ingalls Shipbuilding celebrated the "start of fabrication" of the U.S. Coast Guard's fourth National Security Cutter, Hamilton (WMSL 753). The milestone signifies that 100 tons of steel have been cut and fabricated utilizing a robotic plasma arc cutting machine at Ingalls' steel fabrication complex. Ingalls received the $480 million contract to build Hamilton in November 2010. The ship is scheduled to be delivered to the U.S. Coast Guard in the fall of 2014. Ingalls has delivered the first two NSCs, Bertholf (WMSL 750) and Waesche (WMSL 751). Stratton (WMSL 752), the third of eight planned ships in the Legend class of cutters, will be delivered to the Coast Guard Friday. (Source: Huntington Ingalls via GlobeNewswire, 08/30/11)

Tuesday, August 30

Mk 38 Tactical Laser System concept tested

BAE Systems, Boeing, and the Navy recently conducted a successful test of the Mk 38 MOD 2 Tactical Laser System concept at Eglin Air Force Base in Eglin, Fla. The concept is a proposed high energy laser addition to the Mk 38 naval gun systems currently deployed on most surface combatants. The field testing demonstrated a capability to identify and classify targets and provide rapid hand-off to the Mobile Active Targeting Resource for Integrated Experiments system for interdiction. The test system fired against air and surface maritime targets. Additionally, swarm tests were conducted to simulate an attack by a large number of fast, maneuvering small boats, intermingled with neutral boat traffic. These tests demonstrated a consistent ability to detect, track, classify and engage threat vessels at tactically relevant ranges. (Source: BAE Systems via Business Wire, 08/30/11)

Monday, August 22

UNO gets money for high-tech tools

NEW ORLEANS, La. - The University of New Orleans received $306,216 from the Department of Defense to buy equipment that features a welding technique that has been used on the space shuttle's external tank. The equipment will be used on ships. Known as friction stir welding, the technique has been used at UNO's National Center for Advanced Manufacturing since 2002. (Source: New Orleans Times-Picayune, 08/22/11)

Friday, August 19

BAE shipyard wins contract

MOBILE, Ala. - BAE Systems Southeast Shipyards announced its first contract to build a new ship from scratch at its Mobile River facility. Weeks Marine Inc. hired BAE to build a 356-foot-long, 79-foot-wide dredging vessel for use in the U.S., according to BAE. The twin screw trailing suction hopper will have a capacity of 8,500 cubic yards. The contract is worth $85 million, according to BAE. (Source: Mobile Press-Register, 08/18/11)

Bollinger sued over cutters

The Justice Department has accused Bollinger Shipyards Inc. of Lockport, La., of falsifying data that led the Coast Guard to contract with the firm to lengthen eight deepwater cutters, all of which turned out "unseaworthy and unusable." The allegations are made in a civil suit filed in July in U.S. District Court Washington, D.C., and made public Wednesday. The suit claims Bollinger exaggerated the structural hull strength of the eight boats it had contracted to lengthen from 110 feet to 123 feet. The suit seeks unspecified damages. In a statement Bollinger said the company has a spotless record for honest and fair dealings. (Source: New Orleans Times-Picayune, 08/18/11)

Thursday, August 18

Union contests Austal vote

MOBILE, Ala. - Local 441 of the Sheet Metal Workers International Association has filed a complaint with the National Labor Relations Board after a failed attempt earlier this month to organize Austal USA. The complaint claims, among other things, that Austal coerced and intimidated employees. Austal USA President Joe Rella said company representatives acted in a lawful and professional manner throughout the election process. Workers voted 613-367 against unionizing. Austal is Mobile's largest industrial employer, with more than 2,100 workers. It's building littoral combat ships and high-speed transport vessels for the Navy. (Source: Mobile Press-Register, 08/17/11)

Wednesday, August 17

Contract: Lockheed Martin, $7M

Lockheed Martin Mission Systems and Sensors, Moorestown, N.J., is being awarded a $6,986,478 option exercise modification to previously awarded contract for management and engineering services to maintain and modify as necessary the design of DDG 51-class combat system compartments and topside arrangements, in support of the program executive officer Integrated Warfare Systems. The required services for DDG 51-class ships include program management and operation support, quality assurance, configuration management, ship design integration, fleet lifecycle engineering support, installation support, firmware maintenance, combat system test and evaluation, Navy-furnished material support, special studies, and future-ship integration studies. Twenty-two percent of the work will be done in Pascagoula, Miss. Other sites where work will be done are Moorestown, N.J. (37 percent); Bath, Maine (25 percent); San Diego, Calif. (6 percent); Washington, D.C. (5 percent); Norfolk, Va. (3 percent); Port Hueneme, Calif. (1 percent); and Syracuse, N.Y. (1 percent). Work is expected to be completed by September 2012. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity. (Source: DoD, 06/17/11)

BAE gets grant for Mobile yard

MOBILE, Ala. - BAE Systems Southeast Shipyards has received a $1 million grant from the U.S. Department of Transportation for a steel profile processing system. The money is through a U.S. Maritime Administration grant program designed to assist small shipyards modernize facilities to increase productivity of shipbuilders. BAE will use the money for an automated system for cutting and welding stiffening profiles to steel plates on ships. BAE has about 800 workers at its Mobile yard. (Source: Mobile Press-Register, 08/16/11)

Monday, August 15

Contract: Huntington Ingalls, $11M

Huntington Ingalls Industries, Pascagoula, Miss., is being awarded a $10,999,993 modification to previously awarded contract for research, development, test, and technical services for the DDG 1000 Zumwalt-class destroyer. Technical services include technology development, analytical modeling, qualification of materials, potential design/process improvements, and design excursions. Work will be performed in Pascagoula, Miss. (80 percent), and Gulfport, Miss. (20 percent), and is expected to be completed by September 2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 08/15/11)

Saturday, August 13

Stratton returns from sea trials

Huntington Ingalls photo
PASCAGOULA, Miss. - Huntington Ingalls Industries' third U.S. Coast Guard National Security Cutter, Stratton (WMSL 752), returned from sea after successfully completing acceptance sea trials. The ship spent two days in the Gulf of Mexico testing all systems for the Board of Inspection and Survey. INSURV evaluated Ingalls' test and trials team as it conducted extensive testing of the propulsion, electrical, damage control, anchor handling, small boat and combat systems. The 418-foot NSC is the flagship of the Coast Guard's cutter fleet, designed to replace the 378‐foot Hamilton-class High-Endurance Cutters, which entered service during the 1960s. Stratton is scheduled for delivery to the Coast Guard on Sept. 2. It's the third of eight planned ships in this new class of multi-mission cutters. Bertholf and Waesche have been commissioned and in service. The construction contract for a fourth cutter, Hamilton, was awarded in November 2010 and construction will begin on Aug. 29. (Source: Huntington Ingalls, 08/12/11)

Thursday, August 11

VT Halter Marine starts new ship

Construction on a $144 million shipping vessel for Honolulu-based Pasha Hawaii began Tuesday with the cutting of the first piece of steel at VT Halter Marine’s shipyard in Pascagoula, Miss. The ship is a combination container and roll-on/roll-off car-truck carrier called the Marjorie C, which will provide weekly service between the West Coast and Hawaii. This is the second vessel to join the fleet built by VT Halter Marine for Pasha Hawaii. The company also has an option agreement for the construction of a third vessel with a base price of $137 million. The ship is scheduled for service by the fall of 2013. (Source: Pacific Business News, 08/09/11)

Saturday, August 6

Austal workers reject union

MOBILE, Ala. - Austal USA workers have rejected union representation for a third time, voting 613-367 against representation by the Sheet Metal Workers International Association union, according to company officials. The election was held Thursday and Friday. Of 1,169 eligible workers, about 90 percent voted. The union lost two previous votes, but each time the National Labor Relations Board ordered a new election because of unfair labor practices. Austal USA, along the Mobile River, has more than 2,000 workers and build littoral combat ships for the Navy. (Source: Mobile Press-Register, 08/05/11)

Friday, August 5

Contract: Bath Iron Works, $110.8M

The Navy awarded Bath Iron Works, a subsidiary of General Dynamics, a $110.8 million modification to a previously awarded contract for long-lead construction for DDG 1001, procurement of long-lead-time material for DDG 1002 and engineering, production and support services. The original contract for the Zumwalt class was awarded in February 2008. Work encompassed by this modification is expected to be completed by October 2011. (Sources: DoD, 08/04/11, General Dynamics via PRNewswire, 08/05/11) Gulf Coast note: Ingalls Composite Center of Excellence in Gulfport, Miss., is building the composite deckhouses and hangars for the DDG 1000 ships.

Wednesday, August 3

Austal marks milestone

MOBILE, Ala. - Austal celebrated a milestone Tuesday, cutting the first piece of aluminum on LCS 6, the first ship in a projected 10-vessel, $3.5 billion deal. The latest ship, which will be christened the Jackson, is the first that Austal USA will build as a prime contractor for the U.S. Navy. Austal built both a previous LCS and one under construction as a subcontractor for General Dynamics Corp. Austal President Joe Rella said the company has overcome a design flaw discovered earlier this year on LCS 2 that allowed corrosion where two different metals joined. He said the fix is designed into the Jackson. (Source: Mobile Press-Register, 08/03/11)

Sub set for Gulfport commissioning

GULFPORT, Miss. - The Virginia-class attack submarine USS Mississippi will be commissioned in the Gulfport Small Craft Harbor in May 2012, according to Mayor George Schloegel. He made the announcement Tuesday at a meeting of the Gulfport Business Club. The Electric Boat Division of General Dynamics in Groton, Conn., is the prime contractor for the 377-foot-long USS Mississippi (SSN-782). (Source: Sun Herald, 08/02/11) Note: Seemann Composites of Gulfport provided key composite parts for the nuclear-powered Virginia-class sub. Background story

Friday, July 22

Contract: General Dynamics, $10M

General Dynamics - Bath Iron Works, Bath, Maine, is being awarded a $10,000,000 cost-plus-award-fee modification to existing previously awarded basic ordering agreement to provide engineering and management services for advance planning and design in support of the post shakedown availability for USS Independence (LCS 2). Work will be performed in Bath, Maine (72 percent); Pittsfield, Mass (20 percent); and Mobile, Ala. (8 percent). Work is expected to be completed by February 2013. The Supervisor of Shipbuilding, Conversion, and Repair, Bath, Maine, is the contracting activity. (Source: DoD, 07/22/11)

Sunday, July 17

BAE bringing shipbuilding back to yard

MOBILE, Ala. - New ship construction will be returning to the site of the former Alabama Dry Dock and Shipbuilding Co., officials with BAE Systems Southeast Shipyards said Friday. The company said it will partner with Netherlands-based IHC Merwede to build offshore oil vessels at BAE's yards in Jacksonville, Fla., and Mobile. BAE has about 800 workers at its Mobile yard now, but could grow by 400 in the coming years because of the agreement. ADDSCO, on Pinto Island, opened in 1916 and closed in 1988. It was bought by Atlantic Marine in 1992, and sold to BAE last year. (Source: Mobile Press-Register, 07/15/11)

Friday, July 15

LCS to be named Little Rock

Secretary of the Navy Ray Mabus announced today that the next Freedom-class littoral combat ship will be named the USS Little Rock (LCS 9). Little Rock is the second ship to bear the name of the capital city in Arkansas. The first, a Cleveland-class light cruiser that served after World War II, was converted to a Galveston-class guided missile cruiser and is now a museum in Buffalo, N.Y. The new monohull Little Rock will be 378 feet long and built in Marinette, Wis., by a Lockheed Martin team. The other class of LCS, the Independence class, is an aluminum trimaran built in Mobile, Ala., by Austal USA. (Source: DoD, 07/15/11)

Wednesday, July 13

Contract: Huntington Ingalls, $98.6M

Huntington Ingalls Inc., Pascagoula, Miss., is being awarded a $98,614,104 cost-plus-fixed-fee not-to-exceed modification to previously awarded contract for advance procurement of long-lead-time materials in support of LPD 27, the 11th ship of the LPD class. Work will be done in Pascagoula and is expected to be completed by January 2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 07/13/11)

Shipyard savings claim questioned

Northrop Grumman says it will save the government some $600 million by divesting its shipbuilding operation and closing the Avondale, La., shipyard. But the Pentagon's audit agency concluded it can't verify the claim. More than 90 percent of the claimed shutdown costs were unsupported because the contractor could not provide evidence of its underlying assumptions, the Navy said. (Source: Bloomberg, 07/12/11)

Tuesday, July 12

Oversight of vessels, modules combined

MOBILE, Ala. - The Navy put a rear admiral in charge of a new office overseeing the entire littoral combat ship program, a change from the previous division between building the vessels and the mission modules. The vessel program is ahead of the modules, packages of weapons and equipment designed for hunting mines, fighting submarines and attacking surface enemies. Navy officials said the decision to merge oversight of the programs had nothing to do with their respective performances, but simply to put both programs under the same leadership. (Source: Mobile Press-Register, 07/11/11)

Tuesday, July 5

Mobile ship makes movie debut

The Austal USA-built USS Independence is one of the characters in the movie “Cars 2.” Officials from Austal and the Navy, which owns the Independence, said they didn't approach Pixar or Disney about using the ship, "but to have one of the most creative movie studios in Hollywood feature a Mobile-built product confirms what we locals have known for years, our ship is awesome," said Joe Rella, president of Austal USA. In the movie, the unnamed ship character is seen guarding the villain's offshore oil platform lair and then chasing after one of the movie's heroes, spy car Finn McMissile. The ship pops up again at the end of the movie. Austal is building its second littoral combat ship as a subcontractor for General Dynamics, then will be the prime contractor for 10 more. (Source: Mobile Press-Register, 07/05/11)

Friday, July 1

Stratton finishes builder's sea trials

PASCAGOULA, Miss. - Ingalls Shipbuilding's third Legend-class national security cutter, Stratton (WMSL 752), successfully completed builder's sea trials in the Gulf of Mexico this week, the company announced. The 418-foot cutter spent three days at sea, while Ingalls' test and trials team conducted extensive testing of the propulsion, electrical, damage control, anchor handling, small boat and combat systems. (Source: Mississippi Press, 07/01/11)

Thursday, June 30

Contract: Austal USA, $312.9M

Austal USA, Mobile, Ala., is being awarded a $312,939,336 modification to previously awarded contract for the exercise of construction options for ships six and seven of the Joint High Speed Vessel (JHSV) Program. The JHSV will provide high speed, shallow draft transportation capability to support the intra-theater maneuver of personnel, supplies and equipment for the Navy, Marine Corps, and Army. Work will be performed in Mobile, Ala. (48 percent); Pittsfield, Mass. (9 percent); Franklin, Mass. (3 percent); Philadelphia, Pa. (3 percent); Henderson, Wash. (3 percent); Atlanta, Ga. (2 percent); Chicago, Ill. (2 percent); Gulfport, Miss. (2 percent); Slidell, La. (1 percent); Iron Mountain, Mich. (1 percent); Houston, Texas (1 percent); Dallas, Texas (1 percent); Chesapeake, Va. (1 percent); Milwaukee, Wis. (1 percent); and Brookfield, Wis. (1 percent), with other efforts performed at various sites throughout the United States (5 percent) and outside the United States (16 percent). Work is expected to be completed by June 2014. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 06/30/11)

Wednesday, June 29

Contract: Lockheed Martin, $13M

Lockheed Martin Corp., MS2, Integrated Defense Technologies, Baltimore, Md., is being awarded a $13,070,102 modification under previously awarded contract for MK 41 Vertical Launching System (VLS) ordnance alteration kits, production support material, interim support parts, and equipment in support of DDG 51-class new construction, and Aegis modernization programs. The MK 41 VLS provides a missile launching system for CG 47- and DDG 51-class surface combatants of the U.S. Navy, surface combatants of allied navies, and Aegis Ashore requirements for Missile Defense Agency's Ground Ballistic Missile Defense Program. It is the primary missile launching system aboard Navy combatants used to store, safe, inventory and launch missiles of various types. Work will be performed in Fort Walton Beach, Fla. (18.8 percent,) as well as Baltimore, Md. (29.5 percent); Moorestown, N.J. (11.6 percent); Lewisburg, Tenn. (10.1 percent); Johnstown, Pa. (9.2 percent); Owego, N.Y. (9.0 percent); Simpsonville, S.C. (5.5 percent); Clearwater, Fla. (3.2 percent); and Sterling Heights, Mich. (3.1 percent). Work is expected to be completed by June 2013. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 06/29/11)

Friday, June 24

Contract: Lockheed Martin, $7.7M

Lockheed Martin Mission Systems and Sensors, Moorestown, N.J., is being awarded a $7,680,000 modification to previously awarded contract for management and engineering services to maintain and modify as necessary the design of DDG 51-class combat system compartments and topside arrangements, in support of program executive officer Integrated Warfare Systems. Twenty-two percent of the work will be done in Pascagoula, Miss. Other work will be done in Moorestown, N.J. (37 percent); Bath, Maine (25 percent); San Diego, Calif. (6 percent); Washington, D.C. (5 percent); Norfolk, Va. (3 percent); Port Hueneme, Calif. (1 percent); and Syracuse, N.Y. (1 percent), and is expected to be completed by September 2011. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 06/24/11)

Thursday, June 23

Exports, STEM highlight Mississippi ranking

Among the states, Mississippi ranks No. 5 for export growth, according to the Enterprising States 2011 study just released by the U.S. Chamber of Commerce. Mississippi is also ranked 10th in cost of living, 11th in per capita income growth and higher education efficiency, and 12th in productivity growth and business birth rate. Mississippi is also ranked 20th in science, technology, engineering and math job growth as well as 20th in entrepreneurial activity. (Source: Tcp, 06/23/11) Study: U.S. Chamber of Commerce

VT Halter eyes expansion

PASCAGOULA, Miss. - VT Halter Marine plans to diversify and expand its Pascagoula shipyard with the addition of a floating dry dock that will let it begin repairing semi-submersible drilling rigs and new Panamax-sized ships. The proposed dock is 715 feet by 389 feet and is L-shaped. It would be placed on the west side of Bayou Casotte, with the existing VT Halter facilities to the north and Signal International to the south. The board of directors still has to give final approval. (Source: Mississippi Press, 06/23/11)

Sunday, June 19

Corrosion found on new LCS

A littoral combat ship built by Austal USA in Mobile, Ala., will have to be dry-docked to remove water jets that have suffered corrosion, according to a report by Bloomberg. The Navy has discovered "aggressive" corrosion in the propulsion areas of the aluminum-hulled USS Independence. In February, the Navy found another ship in the series, this one built in Wisconsin by a team led by Lockheed Martin, had developed a crack through the hull. (Source: Bloomberg, Mobile Press-Register, 06/17/11)

Wednesday, June 15

Contract: Huntington Ingalls

Huntington Ingalls Inc., Pascagoula, Miss., is being awarded a fixed-price-incentive contract for DDG 113 construction, engineering change proposals, and design budgeting requirements. As this award represents the first DDG 51 class ship to be awarded for the continuation of the DDG 51 class program, and there is a competitive solicitation for additional DDG 51 class ships, the contract award amount and percentages of work to be performed in each location for DDG 113 are considered source selection information and will not be made public at this time. Significant work will be performed in Pascagoula, Miss.; Cincinnati, Ohio; Walpole, Mass.; Burns Harbor, Ind.; York, Pa.; and Charlottesville, Va. Work is expected to be completed by July 2017. This contract was not competitively procured. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 06/15/11)

JHSV module damaged

MOBILE, Ala. - A 50-ton block of the second Joint High Speed Vessel being built at Austal USA broke loose over the weekend, fell three feet and tipped over, the shipbuilder confirmed to Navy Times. The block is one of 44 units that make up a JHSV. The extent of the damage to the module and the cost of repairs are still being assessed. The shipyard is building JHSVs and littoral combat ships. (Source: Navy Times, 06/14/11)

Thursday, June 9

Taber to work on LCS, JHSV components

MOBILE, Ala. - Taber Extrusions will build components for a littoral combat ship and joint high-speed vessel being built by Austal USA of Mobile, Ala. The work will be done at Taber's two manufacturing facilities, one in Gulfport, Miss., and the other in Russellville, Ark. Austal will use Taber extrusions for decking, superstructure and bulkheads. The work is for the LCS Jackson and JHSV Fortitude. (Source: Mobile Press-Register, 06/08/11)

Sunday, June 5

Union gets another shot at Austal

MOBILE, Ala. - A union is getting a third shot to enlist workers at Austal USA's Mobile River shipyard, and an election could come as soon as late July. That's according to a lawyer representing Local 441 of the Sheet Metal Workers International Association. That group has been trying to represent Austal's workforce since 2002. Two previous elections were vacated by federal authorities who found that the company engaged in unfair labor practices with respect to the organizing effort. (Source: Mobile Press-Register, 06/05/11)

Thursday, June 2

Contract: Huntington Ingalls, $25.3M

Huntington Ingalls Industries, Pascagoula, Miss., is being awarded a contract modification in an amount not-to-exceed $25,300,000 to previously awarded contract for long lead time material for DDG 113. Work will be performed in Cincinnati, Ohio (60 percent), and Pascagoula (40 percent), and is expected to be completed by June 2011. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 06/02/11)

Saturday, May 28

Destroyer arrives in Mobile

MOBILE, Ala. - The William P. Lawrence arrived in Mobile on Friday, where her crew will remain until the formal commissioning ceremony on June 4. After the commissioning, the ship will head for its home port in San Diego. The ship is 510 feet long and carries a crew of about 300. The 60th Arleigh Burke-class destroyer was built at Ingalls Shipbuilding in Pascagoula, Miss., and is the 28th destroyer and 90th surface combatant from the Pascagoula shipyard. The ship is named for Vice Adm. William Porter Lawrence, who received his Naval Aviator Wings at Naval Air Station Pensacola, Fla. (Source: Mobile Press-Register, 05/28/11)

Friday, May 27

Contract: General Dynamics, $744.1M

General Dynamics National Steel and Shipbuilding Co., San Diego, Calif., is being awarded a $744,129,956 modification to previously awarded contract for the procurement of the detail design and construction of two mobile landing platform ships. Work will be performed in San Diego, Calif. (62 percent); Mobile, Ala. (7 percent); Pittsburgh, Pa. (6 percent); Beloit, Wis. (5 percent); Crozet, Va. (2 percent); Chesapeake, Va. (2 percent); and Belle Chasse, La. (1 percent), with other efforts performed at various sites throughout the United States (8 percent) and outside the United States (7 percent). Work is expected to be complete by February 2014. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 05/27/11)

VT Halter wins contract

VT Halter Marine won a contract to build a 112-foot offshore articulated tug barge for New York-based Bouchard Transportation Co. Inc. The tug will be similar to others built for Bouchard in previous years by Halter Marine. Construction is set to begin next month at the Moss Point Marine facility in Escatawpa, with delivery September 2012. The company has 1,800 workers at yards in Moss Point, Pascagoula and Escatawpa. (Source: Mississippi Press, 05/26/11)

Navy rejects ship

A new ship designed to carry a billion-dollar ballistic missile tracking radar failed its acceptance trials earlier this month and will need repairs before it can enter service. The Howard O. Lorenzen, built by VT Halter Marine at Moss Point, Miss., is a 534-foot-long ship intended to carry the Cobra Judy Replacement radar, a key sensor used in treaty monitoring and verification for ballistic missile issues. Repair will be done at Kiewit Offshore Services in Corpus Christi, Texas. (Source: Defense News, 05/26/11)

Sunday, May 22

Avondale to be subject of study

NEW ORLEANS, La. - As the Avondale shipyard moves toward closing in 2013, researchers from several universities are teaming to study the 73-year-old facility's economic and cultural contributions to the region. In the coming months, faculty from Loyola, Tulane, Southern University New Orleans and the University of New Orleans plan to survey current and former shipyard employees on a range of topics. Part of the research will focus on examining potential mental and physical health impacts the winding down of the facility may be having on its shrinking workforce. Northrop Grumman, which owned the yard until it was spun off as part of Huntington-Ingalls, decided last year to close the yard. (Source: Times-Picayune, 05/22/11)

Austal growth and the Big Six

MOBILE, Ala. - Austal USA's transformation from a commercial ferry builder to a player for Department of Defense contracts has been impressive. But it isn't yet in the same league as the Big Six. Part of the reason it still needs to prove the value of the ships it's building, and get into position to build even more complex vessels. (Source: Mobile Press-Register, 05/22/11)

Friday, May 20

DDG 110 leaves Pascagoula shipyard

The Navy's latest Aegis guided missile destroyer, the William P. Lawrence, left Ingalls Shipbuilding Thursday and headed out for several days in the Gulf of Mexico. It will later arrive in Mobile, Ala., for its June 4 commissioning before heading to its home port in San Diego. The ship is 510 feet and weighs 9,500 tons and can carry a crew of 300. Four gas-turbine propulsion plans will power the ship to speed above 30 knots. Christened in April 2010, DDG 110 honors the late Vice Adm. William P. Lawrence, who spent nearly six years as a prisoner of war in North Vietnam. The ship is the 28th destroyer built at the Pascagoula shipyard. (Sources: Sun Herald, 05/19/11, Mississippi Press, 05/20/11)

Tuesday, May 10

Ingalls to research welding improvements

Huntington Ingalls Industries' Pascagoula, Miss., shipyard won a $2.7 million grant for a project to improve shipyard welding. Ingalls was one of six shipyards sharing about $14.6 million in project grants from the National Shipbuilding Research Program. Funding is from the U.S. Navy and industry groups. The idea is to develop a process to eliminate over-welding to reduce distortion. (Source: Mobile Press-Register, 05/09/11)

Thursday, May 5

Army transfers JHSVs to Navy

The Army has transferred to the Navy all five of its Joint High Speed Vessels. The Memorandum of Agreement was signed May 2, and clarifies relationships, identifies roles and responsibilities and provides an implementation plan. Initially the JHSV program was envisioned to have five of the first 10 JHSVs assigned to the Army, with the Navy getting the rest. But at the Army/Navy Warfighter Talks in December 2010, both services agreed to assign all of the vessels to the Navy. The Military Sealift Command will crew the JHSVs with civilian mariners or contract mariners. Joint High Speed Vessels will be used for fast transport of troops, military vehicles and equipment. (Source: NNS, 05/05/11) Gulf Coast note: The catamaran ships are built by Austal USA in Mobile, Ala.

Thursday, April 28

BAE to showcase ship repair

HOUSTON - BAE Systems will showcase its ship repair capabilities at the 2011 Offshore Technology Conference May 2-5 in Houston. With more than 5,000 workers, BAE Systems does drydock and pierside repairs and in maintenance, overhaul and conversion of commercial and military vessels. It has six full-service shipyards, including the 423-acre site in Mobile, Ala., and a satellite ship repair facility in Moss Point, Miss. (Source: Business Wire, 04/28/11)

Wednesday, April 27

Huntington Ingalls names shipyard chiefs

PASCAGOULA, Miss. - Huntington Ingalls Industries Inc., owner of Pascagoula’s 10,800-employee shipyard, said its board of directors approved Irwin F. Edenzon and Matthew J. Mulherin as corporate vice presidents and presidents of the company’s two major shipyards. Edenzon was named president of Ingalls Shipbuilding and Mulherin became president of Newport News Shipbuilding in Virginia. HII, previously the shipbuilding division of Northrop Grumman Corp., began operating on March 31 as an independent, publicly traded company. (Source: Mississippi Press, 04/26/11)

Saturday, April 16

BAE to provide LCS guns, coms

BAE Systems will provide the external communications and primary gun systems for 10 littoral combat ships to be built by Austal USA of Mobile, Ala. BAE, which runs a shipyard in Mobile, will build the 57-mm gun systems used to defend against aerial, surface or ground threats. BAE will also be building radio and antenna systems and other types of specialized equipment and hardware for ship communications. The work will be done at BAE facilities in California, Maryland, Kentucky, Minnesota and Sweden. (Source: Mobile Press-Register, 04/15/11) Gulf Coast note: BAE Systems also has operations in Gautier, Miss., and Fort Walton Beach, Fla.

Friday, April 8

BAE eyes more workers

MOBILE, Ala. - The Mobile facility of BAE Systems Southeast Shipyards will add up to 400 workers to finish building an oil tanker, a company official said. The shipyard on the east bank of Mobile River has 600 workers and another 200 to 250 contractors. The extra workforce is needed to finish a tanker for Mid-Ocean Tanker Co. LLC of South Norwalk, Conn. (Source: Mobile Press-Register, 04/07/11)

Tuesday, April 5

More ship contracts being negotiated

PASCAGOULA, Miss. - Huntington Ingalls Industries CEO Mike Petters told Jackson County leaders today that Friday's $1.5 billion ship contract is just the first of five the company is negotiating with the Navy over the next two years. HII separated from Northrop Grumman March 31 and now trades on the New York Stock Exchange. (Source: Sun Herald, 04/05/11)

Friday, April 1

Contract: Huntington Ingalls, $1.5B

Huntington Ingalls Industries Inc. of Pascagoula, Miss., a wholly owned subsidiary of Northrop Grumman Shipbuilding, is being awarded a $1,496,200,000 fixed-price-incentive modification to previously awarded contract for the procurement of the detail design and construction of LPD 26, the future USS John P. Murtha, 10th ship in the LPD 17 amphibious transport dock ship class. Work will be performed in Pascagoula, (82 percent); Crozet, Va. (4 percent); Beloit, Wis. (2 percent); and New Orleans, La. (1 percent). Other efforts will be performed at various sites throughout the United States (11 percent). Work is expected to be completed by February 2016. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 04/01/11)

Austal breaks ground on expansion

MOBILE, Ala. - Austal USA broke ground Thursday on a $116 million project to build three new facilities at its Mobile River complex. The construction should be finished within 15 months. It will allow the shipbuilder to hire another 2,000 workers and complete contracts to build joint high-speed vessels and littoral combat ships. Austal employs about 2,000 people in Mobile. (Source: Mobile Press-Register, 03/31/11)

Wednesday, March 30

Contract: Northrop Grumman, $28.7M

Northrop Grumman Shipbuilding Inc., Pascagoula, Miss., is being awarded a $28,734,634 modification on a not-to-exceed basis to previously awarded contract for the procurement of additional long lead time material in support of the LHA replacement flight 0 amphibious assault ship. Work will be performed in Philadelphia, Pa. (79.9 percent), and Pascagoula, Miss. (20.1 percent) and is expected to be completed by March 2014. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/30/11)

Contract: Lockheed Martin $12M

Lockheed Martin Mission Systems and Sensors, Moorestown, N.J., is being awarded a $12,019,446 option exercise modification to previously awarded contract for management and engineering services to maintain and modify as necessary the design of DDG 51 class combat system compartments and topside arrangements, in support of the Program Executive Officer Integrated Warfare Systems. Work will be performed in Moorestown, N.J. (37 percent); Bath, Maine (25 percent); Pascagoula, Miss. (22 percent); San Diego, Calif. (6 percent); Washington, D.C. (5 percent); Norfolk, Va. (3 percent); Port Hueneme, Calif. (1 percent); and Syracuse, N.Y. (1 percent). Work is expected to be completed by September 2011. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/30/11)

Friday, March 25

LCS to be named Jackson, Montgomery

MOBILE, Ala. - Secretary of the Navy Ray Mabus said today that the next two Freedom-class littoral combat ships to be built in Alabama by Austal USA will be named the USS Jackson and the USS Montgomery. The two ships are part of a dual block buy of LCS class ships announced by Mabus in December 2010. The selection of Jackson, designated LCS 6, honors the state capitol in Mississippi and is the first ship to bear the city's name. The selection of Montgomery, the capitol of Alabama, designated LCS 8, honors Alabama's capital. This is the second ship to bear the city's name. (Source: DoD, 03/25/11)

Wednesday, March 23

Mabus to visit Austal

MOBILE, Ala. - Navy Secretary Ray Mabus will be at Austal USA's shipyard in Mobile Friday to make an announcement about the littoral combat ship program. The Navy last year awarded Austal and Lockheed Martin 10-vessel contracts to build littoral combat ships, which are designed to fight in coastal waters. (Source: Mobile Press-Register, 03/23/11)

Tuesday, March 22

Ship christening set for Saturday

PASCAGOULA, Miss. - An amphibious transport dock ship, Arlington, will be christened Saturday at a ceremony at Northrop Grumman Shipbuilding's Pascagoula yard. LPD 24 is named for Arlington County, Va., where an airliner crashed into the Pentagon on Sept. 11, 2001. The 684-foot Arlington is one of three Navy ships to honor the heroes and victims of the terrorist attacks. USS New York has been delivered to the Navy and USS Somerset, named for the county in Pennsylvania where another airliner crashed on 9/11, is under construction in Avondale, La. (Source: Mississippi Press, 03/22/11)

Monday, March 21

Contract: Swiftships, $42.1M

Swiftships Shipbuilders LLC, Morgan City, La., is being awarded a $42,181,000 modification to previously awarded contract for the detail design and construction of three 35-meter patrol boats, with an option for three additional 35-meter patrol boats and associated technical services for the Iraqi navy. This contract modification includes options which would bring the value to $83,479,000. Work will be performed in Morgan City, La. (60 percent); Detroit, Mich. (30 percent); Ocean Springs, Miss. (8 percent); and Charlottesville, Va. (2 percent), and is expected to be completed by August 2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/21/11)

Saturday, March 19

Navy gives nod to spinoff

The Navy said it's now in a position to support Northrop Grumman's spin-off of its shipbuilding business. The Navy finds Huntington Ingalls Industries Inc. responsible for award of amphibious transport dock ship LPD 26 and guided missile destroyer DDG 113, both contracts currently under negotiation. The Navy's concern with HII's credit rating, driven by its initial debt, has been offset by Northrop Grumman's agreement to relieve HII of first quarter 2011 debts and to provide a starting cash balance of $300 million. (Source: DoD, 03/17/11, Mississippi Press, 03/18/11)

Thursday, March 17

Contract: Austal, $368.6M

Austal USA, Mobile, Ala., is being awarded a $368,592,125 modification to previously awarded contract to contractually authorize fiscal 2011 Littoral Combat Ship (LCS) construction. Fifty-one percent of the work will be done in Mobile and two percent in New Orleans. Other work will be done in Pittsfield, Mass., Cincinnati, Ohio, Baltimore, Md., Burlington, Vt., and various other locations. Work is expected to be complete by October 2015. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/17/11)

Tuesday, March 15

Contract: Austal, $19.7M

Austal USA, Mobile, Ala., is being awarded a $19,665,646 modification to previously awarded contract to exercise options for special studies, analyses, review and class- service efforts for the Littoral Combat Ship (LCS) program. Austal USA will assess engineering and production challenges and evaluate the cost and schedule risks from affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Mobile, Ala. (83 percent), and Pittsfield, Mass. (17 percent). Work is expected to be completed by March 2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/15/11)

NG board OKs spinoff

Northrop Grumman's board of directors has approved the spin-off of a wholly owned subsidiary, Huntington Ingalls Industries. Northrop Grumman stockholders will get one share of the shipping business for every six shares of Northrop Grumman stock they hold on March 30. Shares of the shipbuilding business will trade under the symbol "HII." When Northrop said in July it would explore strategic alternatives for the unit, it also announced plans to close its Avondale facility in Louisiana and consolidation of that yard's work in Pascagoula, Miss. (Source: Mississippi Press, 03/15/11)

Friday, March 4

Contract: Arete Associates, $26.4M

Arete Associates, Tucson, Ariz., is being awarded a $26,400,000 firm-fixed-price letter contract for the engineering, manufacturing, production and delivery of three Coastal Battlefield Reconnaissance and Analysis (COBRA) AN/DVS-1 low rate initial production Block 1 systems as part of the Mine Warfare Mission Package onboard the littoral combat ship. As a result of this Small Business Innovative Research Phase III award, the COBRA system will have the software that satisfies the performance requirements, the mine counter measure, intelligence surveillance and reconnaissance, and tactical littoral sensor modes installed. Work will be performed in Tucson, Ariz., and is expected to be completed by March 2013. The Naval Surface Warfare Center Panama City Division, Panama City Beach, Fla., is the contracting activity. (Source: DoD, 03/04/11) Note: Littoral Combat Ships are built in Mobile, Ala.

Friday, February 25

Contract: Lockheed Martin, $7.5M

Lockheed Martin MS2, Moorestown, N.J., was awarded a $7,500,000 modification to previously awarded contract to exercise an option for engineering services for DDG 51 class and CG 47 class Aegis combat system installation, integration and test, and fleet life cycle engineering support for the program executive officer for Integrated Warfare Systems. Some of the work, 1 percent, will be done in Pascagoula, Miss. Half the work will be done in New Jersey, and the rest in Maryland, Virginia, Washington, D.C., Ohio, Florida, California, and Maine. Work is expected to be completed by September 2011. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 02/25/11)

Thursday, February 24

Latest destroyer delivered to Navy

PASCAGOULA, Miss. - The Navy welcomed its latest destroyer Wednesday afternoon after accepting ownership of the William P. Lawrence during a ceremony at Northrop Grumman Shipbuilding's Pascagoula shipyard. The ship, which is 510 feet long and carries a 276-person crew, will be capable of simultaneously fighting air, surface and subsurface battles. The ship will leave Pascagoula May 19. (Source: Mississippi Press, 02/24/11)

Austal tax break goes up

MOBILE, Ala. - Austal USA decided to spend more on its latest expansion and will get a bigger tax break. The Mobile City Industrial Development Board voted Wednesday to exempt Austal from some $19.7 million in sales and nonschool property taxes over the next 10 years, up from the $8.9 million in tax breaks that were approved a month ago. The additional work drove up the cost of the work from $75 million to $145 million. (Source: Mobile Press-Register, 02/24/11)

Wednesday, February 16

Destroyer's mast antenna breaks off

The upper part of the mast on the destroyer USS Gravely broke off Sunday off the northern Florida coast while conducting routine operations, the Navy said. The damage was to the mast mounted antenna. Nobody was injured and the ship safely returned to Mayport, Fla. The Gravely, DDG 107, was build by Northrop Grumman at its Pascagoula shipyard. The ship was commissioned in November. (Source: Navy Times, 02/15/11)

VT Halter gets contract

PASCAGOULA, Miss. – VT Halter Marine has won a $144 million contract to build a second carrier vessel for a Hawaii company, officials said. The company will build a roll-on/roll-off car/truck carrier for Pasha Hawaii by fall of 2013 that will provide weekly service between the West Coast and Hawaii. The company also signed an option agreement for the construction of a third vessel with a base price of $137 million. (Source: Sun Herald, 02/16/11)

Wednesday, February 2

Keel laid for new survey ship

MOSS POINT, Miss. - VT Halter Marine laid the keel Tuesday of a multimillion-dollar Navy research vessel named after Matthew Fontaine Maury, the father of modern oceanography. The T-AGS 66 research vessel is 253 feet long and can carry a crew of 67. It will take about 18 months to complete the ship, officials said. VT Halter Marine has about 1,800 employees at its Moss Point, Pascagoula and Escatawpa yards. (Sources: WLOX-TV, 02/01/11, Mississippi Press, 02/02/11)

Sunday, January 30

A close look at a sea trial

A Navy Times staff writer provides a detailed look at the recent, successful super trial of the Northrop Grumman-built destroyer William P. Lawrence. The three-day trail is designed to find problems before the ship is delivered to the Navy, and in this case, most on board sensed the ship had performed extraordinarily well. (Source: Navy Times, 01/30/11)

Wednesday, January 26

City, county OK money for Austal

MOBILE, Ala. – Shipbuilder Austal USA will get $2.5 million from the Mobile County Commission and another $2.5 million from the Mobile City Council as incentive to help the company expand at its Mobile River yard. The money will be used to pay for construction of a 30,000 square-foot office building to house Navy personnel. Austal, which is building littoral combat ships for the Navy, plans $150 million in capital improvements. (Source: Mobile Press-Register, 01/26/11 and 01/25/11)

Tuesday, January 25

Destroyer completes super trial

PASCAGOULA, Miss. - Northrop Grumman's Aegis guided missile destroyer William P. Lawrence successfully completed its combined super trial last week in the Gulf of Mexico. The successful sea trial of DDG 110 paved the way for delivery to the Navy in the next six weeks. The 509-foot, 9,200-ton ship is powered by four gas-turbine propulsion plants. Among other things, the ship's weapons, communications and propulsion systems were tested during the trial. (Source: Northrop Grumman, 01/25/11)

Monday, January 24

Fitch sees BB rating for NG spin-off

Northrop Grumman hasn't said whether it will spin off or sell its shipbuilding operations, but Fitch Ratings expects to assign a BB Issuer Default Ratings to Huntington Ingalls Industries Inc., upon completion of the company’s potential spin-off. Fitch said the ratings reflect HII's position as a leading company in the defense shipbuilding industry with core capabilities in building aircraft carriers, nuclear submarines, large amphibious attack vessels, and surface combatants. The company is the sole source manufacturer on about 66 percent of its revenues, and it has a large and highly visible $17 billion backlog. Fitch said HII is well-positioned in the current defense spending environment, with roles on four of the Department of Defense's top 12 programs in the fiscal 2011 budget. Fitch's key concerns include HII's revenue concentration with the Navy and Coast Guard, the ongoing restructuring at the company's Gulf Coast operations and uncertainty about U.S. defense spending after fiscal 2012. (Source: Business Wire, 01/24/11)

Textron gets new MLB contract

NEW ORLEANS - Textron Marine & Land Systems today announced the acceptance of the sixth Motor Lifeboat (MLB) contracted by the Mexican Navy. The first five MLBs have been delivered, with the sixth 47-foot craft scheduled for delivery in the first quarter of 2011. The Mexican Ministry of the Navy contracted with Textron Marine & Land Systems in 2008 to build the MLBs modeled after the craft used by the U.S. Coast Guard. Textron Marine & Land Systems is an operating unit of Textron Systems, a Textron Inc. company. (Source: Business Wire, 01/24/11)

Sunday, January 23

Austal OKd for tax breaks

MOBILE, Ala. - The Mobile Industrial Development Board last week approved tax breaks for shipbuilder Austal USA. The board agreed to exempt Austal from an estimated $8.86 million in sales and non-school property taxes over the next 10 years. The vote abates taxes related to a new assembly bay, land to provide docking space, a building for Navy personnel and bulkhead improvements. (Source: Mobile Press-Register, 01/20/11)

Wednesday, January 19

GulfQuest contracts awarded

MOBILE, Ala. - The Mobile City Council awarded $30 million to six contractors to work on the GulfQuest maritime museum and ferry landing. The contracts represent the bulk of construction. The cost of the museum, which will be located next to the cruise terminal on the Mobile River, is about $52 million. (Source: Mobile Press-Register, 01/19/11) The museum's exhibits will focus on trade, marine archaeology, the Gulf of Mexico ecosystem, marine commerce and shipbuilding, offshore oil and gas exploration and more.

Monday, January 17

USCG awards cutter long-lead contract

PASCAGOULA, Miss. - The U.S. Coast Guard awarded a firm fixed-price contract to Northrop Grumman for long-lead material procurement on a fifth National Security Cutter. The contract is for $89 million, with options that would increase potential value to $94 million. The Legend-class cutters are designed to replace the 378‐foot Hamilton-class cutters that entered service during the 1960s. Two of eight planned National Security Cutters have been commissioned, and a third ship will be delivered this year. A construction contract for the fourth ship was awarded on Nov. 29, 2010. Construction will begin on that ship mid-year 2011. (Source: Globe Newswire, 01/17/11)

Thursday, January 13

LM to do electronics for cutter

Lockheed Martin Corp. won a $66 million contract to provide communications and related equipment for the Coast Guard's fourth National Security Cutter. The 418-foot cutter is designed for homeland security, law enforcement, marine safety and environmental protection. The contract was awarded by Northrop Grumman Corp., which is building the cutter in Pascagoula, Miss. (Source: Philadelphia Inquirer, 01/12/11)

Saturday, January 8

Week in review column

When it comes to defense spending, the Gulf Coast region is all ears. That's not surprising, given that the region between South Louisiana and Northwest Florida has a wealth of military bases and activities, large and small contractors and businesses that rely on the military. It's a safe bet a lot of folks were paying attention when Defense Secretary Robert Gates during the week announced some additional spending cuts. (Source: Gulf Coast Aerospace Corridor, 01/08/11)

Thursday, January 6

DoD "efficiencies" announced

Secretary of Defense Robert M. Gates today announced a series of moves designed to save the Department of Defense more than $150 billion over the next five years by reducing overhead and cutting excess and troubled programs. The bulk of the savings will be used in areas such as shipbuilding, long-range strike, missile defense, intelligence, reconnaissance and surveillance and more. Among other things, the Air Force will buy more simulators for F-35 Joint Strike Fighter air crew training. But the Marine Corps short take-off and vertical landing variant of the F-35 is being placed on a two-year probation because of testing problems, putting the Marine variant to the back of the overall JSF production sequence. In addition, the Navy will develop a new generation of sea-borne unmanned strike and surveillance aircraft. (Source: DoD, 01/06/11) Gulf Coast note: The Gulf Coast is a major military shipbuilding center; Eglin Air Force Base, Fla., is home of the JSF training center; Moss Point, Miss., builds portions of unmanned aircraft.

Tuesday, January 4

Contract: Lockheed Martin, $18.7M

Lockheed Martin Mission Systems and Sensors, Moorestown, N.J., was awarded a $18,708,099 modification to previously awarded contract for management and engineering services to maintain and modify as necessary the design of DDG 51 class combat system compartments and topside arrangements, in support of the Program Executive Office Integrated Warfare Systems. Twenty-two percent of the work will be done in Pascagoula, Miss. Other work sites are New Jersey, Maine, California, Washington, D.C., Virginia, and New York. Work is expected to be completed by September 2011. The Naval Sea Systems Command, Washington Navy Yard, Washington, D.C., is the contracting activity. (Source: DoD, 01/04/11)

Monday, January 3

Austal awards contract to GD

Austal USA has awarded a contract to General Dynamics Advanced Information Systems to be the Platform Systems Engineering Agent (PSEA) of the Independence-class littoral combat ships. The initial contract award is for one ship, with nine additional ships in the following five years. As PSEA, General Dynamics is responsible for the design, integration and testing of the ship's combat and seaframe control systems. This contract could create more than 500 additional jobs with General Dynamics Advanced Information Systems in Pittsfield, Mass., as well as in Mobile, Ala., Virginia, North Carolina, New Jersey and California. General Dynamics Advanced Information Systems is a business unit of General Dynamics. (Source: General Dynamics via PRNewswire, 01/03/11) Austal USA of Mobile, Ala., was awarded a contract last week to build up to 10 littoral combat ships for the Navy. Previous item.

Saturday, January 1

Week in review column

Aerospace is the focus of this column, but it's hard not to pay attention to the major Navy contract that was awarded during the week to Austal USA of Mobile, Ala. The contract to build littoral combat ships underscores the importance of shipbuilding to the Gulf Coast region. But beyond that, it shows contracts can be split between competitors and highlights the crucial role companies with foreign roots play in the U.S. defense industry. (Source: Gulf Coast Aerospace Corridor, 01/01/11)