$533.7B defense budget proposed

WASHINGTON, D.C. - The Defense Department would get a baseline budget of $533.7 billion in fiscal year 2010, up from $513.3 billion appropriated by Congress in 2009, under the president's budget. It's part of the $3.55 trillion budget the White House released Thursday. (Sources: Wall Street Journal, Aviation Week, Washington Post, 02/26/09) Gulf Coast note: The DoD budget is important to this region, which is home to military bases as well as large and small defense contractors, including major shipbuilding operations in Louisiana, Mississippi and Alabama

Austal reports profit fell

Austal Ltd.'s profit fell 43 percent in the first six months of its budget year as the company invested in building its Mobile operations to handle Navy contracts that the Australian company hopes to win. Profit for the six months ended Dec. 31 was $10.9 million. The company employs about 1,000 people at its Mobile River shipyard. (Source: Mobile Press-Register, 02/24/09)

Northrop picks process VP

PASCAGOULA, Miss. - Northrop Grumman appointed Dave Belanger vice president of Quality and Process Excellence for Northrop Grumman Shipbuilding - Gulf Coast. He reports to Irwin F. Edenzon, sector vice president and general manager of Northrop Grumman Shipbuilding's Gulf Coast operations. Belanger comes to the Gulf Coast from Newport News, Va., where he was most recently director of quality and technical services. (Source: Globe Newswire, 02/23/09)

Analyst concerned over modernization

The Navy's 30-year modernization plan could become a victim of its own ambition. That's according to Center for Strategic and Budgetary Assessments analyst Robert Work, who says the 313-ship plan would leave the service lacking capabilities to meet current challenges. Among his recommendations: work on smaller, manned and unmanned undersea vehicles and autonomous systems; buy more littoral combat ships; and end the DDG-1000 program at three ships and restart DDG-51. (Source: Aviation Week, 02/18/09)

BAE Systems to develop railgun

MINNEAPOLIS, Minnesota - BAE Systems was awarded a $21 million, 30-month contract from the Office of Naval Research to develop an advanced electromagnetic railgun for the Navy. The railgun, including a composite launcher, will be demonstrated by 2011. Railguns use electrical energy instead of chemical energy to launch projectiles at hypervelocities with a range in excess of 200 nautical miles. One advantage is the safety and logistics aspect because it uses no explosives in firing or storage. BAE Systems has partnered with IAP Research and SAIC on the project. (Source: BAE Systems, 02/16/09) Gulf Coast note: Gulf Coast shipbuilders are involved in the development of next-generation warships; BAE Systems has operations in the Gulf Coast.

Contract: Northrop, $8.9M

Northrop Grumman Ship Systems, Pascagoula, Miss., is being awarded an $8,999,980 modification to previously awarded contract for systems engineering, design and technical services to support the detail design and construction of the DDG 1000 Zumwalt Class Destroyers. Work will be performed in Pascagoula, Miss., and is expected to be completed by Dec. 2009. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity. (Source: DoD, 02/12/09)

Stennis' SBT 22 gets new complex

STENNIS SPACE CENTER, Miss. - Special Boat Team 22 will open a new two-building, $9.7 million riverine operations complex Friday. The unit specializes in riverine missions, often in support of Navy SEALs. Officials say SBT 22 has grown in the last four years, adding 68 percent more special warfare combatant-craft crewmen. There are 400 sailors permanently assigned to SBT 22 and a technical training school for foreign sailors at Stennis. The team has a fleet of 30 riverine craft. (Source: Navy Times, 02/10/09)

LHD 8 finishes builder's sea trials

PASCAGOULA, Miss. - The amphibious assault ship Makin Island (LHD 8) returned from successful three-day builder's sea trials in the Gulf of Mexico this week. The ship is the eighth USS Wasp-class amphibious assault ship being built by Northrop Grumman at its Gulf Coast facilities in Pascagoula. The ship is 844 feet long and 106 feet wide and weighs 42,800 tons and is designed to transport and land a Marine Expeditionary Unit by helicopter, landing craft and amphibious assault vehicle. It will also have secondary missions of sea control and power projection by helicopter and fixed-wing vertical short take-off and landing aircraft; command and control; and mission support, including a hospital with six operating rooms. Makin Island is scheduled for commissioning at her San Diego homeport in October 2009. (Source: Globe Newswire, 02/10/09)

Contract: Northrop, $16.6M

Northrop Grumman Systems Corp., Bethpage, N.Y., is being awarded a $16,615,880 modification to previously awarded contract to provide integration services for mission packages that will deploy from and integrate with the Littoral Combat Ship. The Navy plans to use spiral development to improve mission capability in identified mission areas. Mission package capabilities are focused on primary mission areas of mine warfare emphasizing mine countermeasures, littoral anti-submarine warfare, and littoral surface warfare operations including prosecution of small boats. About 12 percent of the work will be done in Panama City, Fla., and the largest portion, 47 percent, in Bethpage, N.Y. Work is expected to be completed by September 2009. The Naval Sea Systems Command, Washington D.C., is the contracting activity. (Source: DoD, 02/09/09) Gulf Coast note: Austal USA in Mobile, Ala., is involved in building LCS ships for the Navy

Training center near shipyard in works

MOBILE, Ala. - Mississippi plans to spend at least $20 million in Hurricane Katrina recovery money on a new Mississippi Shipbuilding and Metal Trades Academy near Northrop Grumman Shipbuilding's Pascagoula shipyard, Gov. Haley Barbour told about 100 people at the second annual Gulf States Shipbuilders Consortium in Mobile. Ground will be broken in the spring for the facility operated by Mississippi Gulf Coast Community College. The new training center will collaborate with a similar $12 million facility Alabama's two-year college plans on the east bank of the Mobile River near shipbuilder Austal USA. (Source: Mobile Press-Register, 02/07/09)

Murtha favors split LCS buy

Murtha favors split LCS buy
MOBILE, Ala. – Pennsylvania Congressman John Murtha said that if both sides competing for a shipbuilding contract can get costs down, he’d favor buying ships from both. Murtha, D-Pa., made the comment after visiting Austal USA’s shipyard in Mobile. Austal is part the General Dynamics team competing to build littoral combat ships for the Navy. The other team is led by Lockheed Martin. Both sides have been criticized for cost overruns. (Source: Mobile Press-Register, 01/30/09)

Contract: General Dynamics, $37.7M

General Dynamics Bath Iron Works, Bath, Maine, is being awarded a $37,750,000 basic ordering agreement for Post-Shakedown Availability on the Littoral Combat Ship, USS Independence, LCS-2. The orders to be issued will encompass services that include program management, advance planning, engineering, material kitting, liaison, scheduling and participation in PSA planning conferences and design reviews, and preparation of documentation as required by the Contract Data Requirement List. Work will be performed in San Diego, Calif. (53 percent); Norfolk, Va. (24 percent); and Mobile, Ala. (23 percent) and is expected to be completed by December 2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 01/28/09)

Schools get math, science funds

PASCAGOULA, Miss. - Some $25,000 will go to help Alabama and Mississippi schools grow their math and science programs, Northrop Grumman Shipbuilding said. The grants of up to $5,000 go toward science, technology, engineering and math projects in middle schools. Schools that received grants are Phillips Preparatory School, Mobile, Ala., and in Mississippi, Magnolia Junior High in Moss Point, Gautier Middle School in Gautier, Hancock Middle School in Hancock County, and North Gulfport Middle School in Gulfport. (Source: Mobile Press-Register, 01/28/09)

Northrop to write off $3B

LOS ANGELES, Calif. - Northrop Grumman Corp. will record a fourth quarter loss of $3 billion to $3.4 billion, due to a drop in the book value of its shipbuilding and space technology activities. The company determined that the book value exceeded the fair value. As a result of this charge, the company will report a net loss for the fourth quarter and 2008 when it issues its report Feb. 3. (Source: Northrop Grumman, 01/22/09) Gulf Coast note: Northrop Grumman has a large presence on the Gulf Coast, including shipyards and an unmanned aerial systems plant.

Board OKs tax break for Northrop

PASCAGOULA, Miss. - Jackson County supervisors gave Northrop Grumman a 10-year tax exemption on a portion of $75 million the company spent primarily on Katrina repairs. The exemption would save the company an average of $150,000 a year over the 10 years for a total of $1.5 million. (Source: The Sun Herald, 01/21/09)

US Joiner opens new digs

PASCAGOULA, Miss. - US Joiner has moved into a new $4.5 million facility that is the largest capital investment for the six-year-old company. US Joiner specializes in marine design and engineering, material management and the installation of marine interiors. The new 110,000 square-foot facility includes a warehouse and office space. The Virginia-headquartered company also has operations in New Orleans and San Diego. Its previous location in Pascagoula was damaged by Hurricane Katrina in 2005. (Source: Mississippi Press, 01/13/09)

Taylor urges shipyard upgrade

OCEAN SPRINGS, Miss. - U.S. Rep. Gene Taylor thinks Northrop Grumman should upgrade its Pascagoula shipyard and become certified to build nuclear-powered ships. That's what he said during a town meeting Monday. Taylor also wants the Navy to buy more DDG 51 destroyers, which cost far less than the next-generation DDG 1000, in order to more rapidly increase the size of the Navy fleet. (Source: Mississippi Press, 01/14/09)

Signal lands $50M contract

MOBILE, Ala. - Signal International won a $50 million contract to construct components to be used in a drillship reliability upgrade program for Noble Corp., an offshore drilling contractor for the oil and gas industry. About 200 Pascagoula workers will build the accommodations block and heliports at the East Bank Yard while 800 workers at Signal’s Orange, Texas, facility will construct the stern and sponsons – about 75 percent of the work. Some Pascagoula Signal workers laid off in November and December will be recalled. (Source: Mobile Press-Register, Sun Herald, 01/13/09)

Lockheed gets DDG-51 work

ORLANDO, Fla. - Lockheed Martin was awarded a $15 million contract as part of the Navy's Modernization Program for the DDG 51 Arleigh Burke-class destroyers. The contract for initial Machinery Control System shipsets and related equipment includes options and engineering services which, if exercised, would bring the cumulative value to $51.5 million. Lockheed Martin provides marine engineering control systems for all Arleigh Burke-class destroyers. (Source: PRNewswire, 01/08/09). Northrop Grumman builds DDG-51 destroyers on the Gulf Coast.

Atlantic Marine buys Millennium

MOBILE, Ala. - The purchase of Moss Point, Miss.-based Millennium Industrial and Marine Solutions by Atlantic Marine Holding Co. should help the Mississippi business capture more work contracts, company officials said. Millennium is a steel and pipe fabrication company specializing in on-site drill rig and offshore vessel repair and conversion. Atlantic Marine Holding Co. owns and operates one shipyard in Mobile and two near Jacksonville, Fla. (Source: Mobile Press-Register, 01/01/09)