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March 4, 2010

Austal USA to be prime contractor in next LCS bid

Austal USA and General Dynamics Bath Iron Works (BIW) have agreed to revoke their current teaming arrangement. This allows Austal USA to act as prime contractor in the upcoming bid for 10 U.S. Navy Littoral Combat Ships (LCS). It will also allow BIW to bid as the second source LCS shipbuilder under a new LCS procurement policy,

The Navy is expected to award the contract for two LCS's, including options for an additional eight vessels, by the end of FY 2010. If Austal USA is awarded the FY2010 contract, potentially worth up to $4.8 billion, it will continue to act as prime contractor for future LCS bids. Under the new procurement policy, an additional five-ship contract, to be awarded in FY 2012, is to be awarded to a contractor other than the winner of the 10-ship contract. By revoking the teaming agreement, BIW becomes eligible bid as the second source LCS shipbuilder.

General Dynamics Advanced Information Systems, which is currently the systems integrator in the program, will now subcontract to Austal USA, as it currently does in the Joint High Speed Vessel (JHSV) program, providing open architecture systems that, says Austal, deliver better, faster and more affordable capability.

Joe Rella, Austal USA President and Chief Operating Officer, commented, "Working with BIW, whom we hold in the highest regard as one of the best surface naval shipbuilders in the world, has enabled us to achieve a level of maturity and experience to be a prime shipbuilder of U.S. Naval Combatants, and we are ready to take on this new leadership role in the LCS program."

BIW will continue to act as prime contractor for Austal's second LCS, Coronado (LCS 4), which is currently under construction at Austal USA and due for completion in 2012.


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