DECEMBER 2009

County OKs funding for ceremony
MOBILE, Ala. – The Mobile County Commission approved a $40,000 contract with the
Mobile Council Navy League to market the Jan. 16 commissioning ceremony for the littoral
combat ship Independence, built by Austal USA for the General Dynamics team. The Navy
pays for the ceremony and donations pay for receptions, gifts and special celebrations
leading up to the event. Community leaders have said the ceremony could further
Mobile's emergence as a military shipbuilding center. (Source: Mobile Press-Register,
12/29/09) Note: Just to the west of Mobile, Pascagoula, Miss., is also a military
shipbuilding center.

Contract: VT Halter, $86.7M
VT Halter Marine Inc., Pascagoula, Miss., is being awarded an $86,742,759 firm-fixed-
price contract for detail design and construction of one oceanographic survey ship, T-
AGS 66. This contract includes options which, if exercised, would bring the cumulative
value of this contract to $87,100,607. Work will be performed in Moss Point, Miss., and is
expected to be completed by April 2013. This contract was not competitively procured.
The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source:
DoD, 12/22/09)

Independence delivered to Navy
MOBILE, Ala. - The General Dynamics Littoral Combat Ship Team delivered
Independence, LCS 2, a high-speed trimaran combatant ship, to the Navy Friday. The
ship was constructed by team member Austal USA in Mobile. The delivery of
Independence was preceded by the keel laying of its sister ship, Coronado, LCS 4, on
Dec. 17. LCS 2 will remain in Mobile awaiting its commissioning Jan. 16, 2010.
Independence is the second littoral combat ship delivered to the Navy. The first ship,
Freedom, was built by the Lockheed Martin team. (Source: PRNewswire, 12/18/09)

Austal OKd to start JHSV work
MOBILE, Ala. - Austal USA received approval from the Navy and Department of Defense
to start work on its first Joint High Speed Vessel. JHSV is a 103-meter military transport
ferry that’s part of a potential $1.6 billion, 10-vessel contract. Fortitude, or JHSV 1, will
carry military equipment, including vehicles and a helicopter, and troops at speeds of up
to 43 knots. Austal is also building its second of two 127-meter littoral combat ships,
Coronado, and held a keel laying this week. (Source: Mobile Press-Register, 12/17/09)

VT Halter parent wants to buy Bender
VT Halter Marine of Pascagoula’s parent company, Vision Technologies Systems, has
offered $21 million cash for Bender Shipbuilding & Repair Co.'s Mobile shipyard, kick-
starting a special auction process intended for companies in Chapter 11 bankruptcy to
quickly sell property and repay debts. According to court documents, VT Halter would also
assume certain Bender debts and liabilities. Vision Technologies is a subsidiary of
Singapore Technologies Engineering Ltd., which owns ST Aerospace Mobile at Brookely
Field Industrial Complex. (Source: Mobile Press-Register, 12/16/09)

Keel authentication ceremony held
AVONDALE, La. - Northrop Grumman held a keel authentication ceremony Friday for
Somerset (LPD 25), the ninth ship in the LPD 17 series of San Antonio-class amphibious
transport dock ships being built by the company. Somerset is named in honor of the
passengers and crew of United Airlines Flight 93, who prevented terrorist hijackers from
reaching their target on Sept. 11, 2001. Somerset is the county in Pennsylvania in which
United Flight 93 crashed. Construction of is taking place at the Avondale shipyard, with
fabrication support from the three other company facilities in Pascagoula and Gulfport,
Miss., and Tallulah, La. The 684-foot, 105-foot-wide LPD transport dock ships are used to
transport and land Marines, their equipment and supplies by embarked air cushion or
conventional landing craft and Expeditionary Fighting vehicles, amphibious assault
vehicles, augmented by helicopters or vertical takeoff and landing aircraft such as the
Osprey. (Source: Northrop Grumman, 12/11/09)

Contract: Northrop, $18.6M
Northrop Grumman Shipbuilding, Pascagoula, Miss., is being awarded an $18,604,845
modification to previously awarded contract to exercise options for the accomplishment of
follow yard class services for the DDG 51 class AEGIS Destroyer Program and will provide
expert design, planning and material support services for both DDG 51 ship construction
and modernization. Work will be performed in Pascagoula, Miss., and is expected to be
completed by August 2010. The Naval Sea Systems Command, Washington, D.C., is the
contracting activity. (Source: DoD, 12/10/09)

Cost looms too large in LCS competition?
Three members of the Alabama congressional delegation said in a letter to Navy
Secretary Ray Mabus that the service is putting price ahead of quality and performance in
preparing a winner-take-all showdown to buy up to 10 littoral combat ships. A draft bid
request released last month is structured “to buy the cheapest ship without consideration
of any other factor,” wrote Sen. Richard Shelby, Sen. Jeff Sessions, and Rep. Jo Bonner.
The Navy is dramatically changing its approach to procuring the littoral combat ships.
Instead of continuing with two hull designs, one built by General Dynamics and the other
by Lockheed Martin, the Navy will choose a single structure. Austal USA, in Mobile, Ala., is
part of the General Dynamics team. (Sources: Mobile Press-Register, Aviation Week,
12/04/09)

Contract: Northrop Grumman, $170.7M
Northrop Grumman Shipbuilding, Inc., Pascagoula, Miss., is being awarded a letter
contract with a not-to-exceed amount of $170,700,000 for long lead time material in
support of construction of DDG 113 under the DDG 51 Class destroyer program. This
contract provides propulsion gas turbines, generators, controllable pitch propeller and
other components to support construction of DDG 113. Work is anticipated to be
performed in Massachusetts, Pennsylvania, Ohio, Alabama, Indiana, Louisiana.,
Mississippi, New York, Texas, Virginia and Washington. Work is expected to be completed
by January 2013. This contract was not competitively procured. The Naval Sea Systems
Command, Washington Navy Yard, D.C., is the contracting activity. (Source: DoD,
12/02/09)

Workers approve contract extension
PASCAGOULA, Miss. – Union members voted to accept an offer by Northrop Grumman
Shipbuilding to extend their work contract by two years. The vote was overwhelming,
about 2,300 for an 275 against, according to the Sun Herald. The extension will give
qualified workers a $1,000 bonus on Dec. 17, a maximum 55-cent raise in January and
another in early 2011. Workers keep the same health care coverage costs they
negotiated in 2007 and will forgo a cost of living raise that had been scheduled for
February. The contract will now run until March 2012. (Source: Sun Herald, 12/01/09)

Unions votes today on contract
PASCAGOULA, Miss. - Members of unions at the Northrop Grumman Shipbuilding Ingalls
yard will begin voting today on extending the contract. Union leadership endorsed the
move, saying it benefits both the workers and the company. If ratified, the contract will not
end until March 2012 and will include two raises of 55 cents each for journeymen, less for
other workers, and a $1,000 bonus in mid-December that would take the place of a cost-
of-living raise set for early next year. (Source: Sun Herald, 12/01/09)


NOVEMBER 2009

Dewey arrives in San Diego
SAN DIEGO - The Navy’s newest destroyer has arrived at its new homeport of San Diego.
The Dewey conducted training and readiness drills on its way from the Northrop Grumman
Shipyard in Pascagoula, Miss., according to the Navy. The ship also made a port visit to
Puerto Vallarta, Mexico, where crew members did community service projects. Dewey is
the 55th ship in the Arleigh Burke class of destroyers. Dewey’s commissioning is
scheduled for March 6 at Seal Beach Naval Weapons Station. (Source: Navy Times,
11/24/09)

Two die in shipyard explosion
MOSS POINT, Miss. – Two people died and four were injured late Friday after an
apparent flash fire in a tank on a 120-foot tugboat at VT Halter Marine in Moss Point.
William B. Skinner, chief executive officer of the company, said a crew was cleaning the
tank and getting it ready to paint when there was an explosion. The cause is not yet
known. The company has 200 workers at its Escatawpa site. VT Halter Marine is a
shipbuilding subsidiary of Vision Technologies Systems Inc. It builds small naval ships,
research ships, tug-barge combinations and oilfield support vessels. (Source: Sun Herald,
Mississippi Press, 11/20/09)

Shipbuilder offers contract extension
PASCAGOULA, Miss. - Northrop Grumman wants to extend the current labor contract with
workers by two years, and in doing so, has offered a December bonus, two raises and no
increase in health care coverage for workers during the two years. The unions have
endorsed the proposal. Workers on each shift are expected to receive handouts
explaining the terms when they go to work Monday. Union workers at the Ingalls, Avondale
and Gulfport yards will have the Thanksgiving holidays to consider the offer. A vote is
planned for Dec. 1. The current three-year contract is set to end in March. (Source: Sun
Herald, 11/21/09)

LCS completes acceptance trials
MOBILE, Ala. - The future USS Independence, LCS 2, successfully completed acceptance
trials this week. Acceptance trials are the first opportunity to test the ship and its systems.
During two days underway, the ship completed demonstrations of the combat systems
suite, steering, anchoring and propulsion. The ship achieved a top speed of almost 45
knots during the full power demonstration. The ship is expected to be turned over to the
Navy next month, with commissioning Jan. 16 in Mobile, Ala. The ship was built by Austal
USA, and is a new breed vessel designed for littoral, or near shore, service. (Source:
NNS, 11/19/09)

Raytheon gets LPD-17 life-cycle work
TEWKSBURY, Mass. - Raytheon has been awarded a $197 million Navy contract for life-
cycle engineering and support of the LPD 17 class, the Navy's new generation of
amphibious warfare ships. As a member of the LPD alliance, Raytheon is the total ship
electronics systems integrator for the LPD 17 class as well as the prime contractor for life-
cycle engineering and support. Work on the LPD 17 program is performed in San Diego,
Calif.; Portsmouth, R.I.; and by Raytheon Technical Services Company, New Orleans, La.,
and San Diego. (Source: Raytheon, 11/12/09) Gulf Coast note: The LPD-17 class is built
by Northrop Grumman at its Gulf Coast shipyards.

Cutter turned over to CG
PASCAGOULA, Miss – The Coast Guard on Friday accepted delivery of the Waesche, the
second of the new National Security Cutters built at Northrop Grumman’s Pascagoula
shipyard. The ceremony held on the 418-foot Waesche’s flight deck signaled the transfer
of ownership of the ship from Northrop Grumman Corp. to the Coast Guard. The Bertholf,
the first of eight planned Legend-class cutters, was delivered to the Coast Guard in May
2008 at the Pascagoula shipyard. The third cutter, the Stratton, is about 30 percent
complete in the Pascagoula shipyard. (Source: Mississippi Press, 11/07/09)

NOAA slates dedication, commissioning
PASCAGOULA, Miss. - NOAA officials will commission the Pisces, the agency’s newest
and most advanced fisheries survey vessel, and dedicate the agency’s new fisheries
laboratory Friday. The recently completed NOAA laboratory replaces the facility that was
destroyed by Hurricane Katrina in 2005. The ship and laboratory will support fisheries
research in the Gulf of Mexico, southeastern United States, and Caribbean. (Source: Sun
Herald, 10/03/09)

Signal gets $50M contract
PASCAGOULA, Miss. - Signal International will construct components to be used in a
drillship reliability upgrade program for Noble Corp., an offshore drilling contractor for the
oil and gas industry. The $50 million contract was announced Monday. The work will be
performed at shipyards in Pascagoula and Orange, Texas. (Source: Mississippi Press via
AP, 11/03/09)

USS New York in NYC
NEW YORK - The Northrop Grumman-built USS New York, LPD 21, arrived in New York
Monday to the cheers of well-wishers who lined the waterfront. The ship, built in New
Orleans, left its homeport of Naval Station Norfolk, Va., Oct. 29 to make the voyage to its
namesake for a 10-day long celebration and a commissioning ceremony scheduled Nov.
7. More than seven tons of steel recovered from the World Trade Center was used for the
ship’s hull. (Source: NNS, 11/02/09)


OCTOBER 2009

Atlantic Marine to work on oiler
MOBILE, Ala. - A Navy oiler unused for the past 13 years has been handed over to the
Chilean government, and Mobile's Atlantic Marine will play a key role in its $30 million
revitalization. Chile acquired the vessel in May under a foreign military sales agreement,
where it pays the U.S. government a reactivation fee and the government handles the
work. In this deal, the price tag was $29.95 million, which includes repairing or replacing
equipment and training the sailors. (Source: Mobile Press-Register, 10/25/09)

LCS completes builder’s trials
MOBILE, Ala. – Independence, the high-speed trimaran combatant ship being constructed
by shipbuilder Austal USA as part of the General Dynamics Littoral Combat Ship Team,
successfully completed a series of tests known as builder's trials on October 18 in the
Gulf of Mexico. The trials included more than 50 demonstration events that rigorously test
the ship and all of its systems in preparation for final inspection by the Navy before
delivery. Notable achievements during the trials included reaching a sustained speed of
44 knots during the required four-hour full-power run, with a top speed in excess of 45
knots. (Source: General Dynamics via PR Newswire, 10/21/09)

Northrop Grumman 3Q report
Northrop Grumman Corp. reported that third quarter 2009 earnings from continuing
operations totaled $487 million compared with $509 million in the third quarter of 2008.  
Third quarter 2009 net pension adjustment reduced earnings from continuing operations
by $47 million compared with an increase to earnings from continuing operations of $42
million in the third quarter of 2008. (Source: Northrop Grumman, 10/21/09) Gulf Coast
note: Northrop Grumman has multiple operations in the Gulf Coast.

Makin Island commissioning set
NORTH ISLAND, Calif. – The Pascagoula, Miss.-built USS Makin Island will be formally
commissioned in a ceremony on Naval Air Station North Island Oct. 24. The ship arrived in
San Diego in mid-September, bringing over 1,000 sailors and their families to the San
Diego community. Makin Island is the final amphibious assault ship built in the LHD-1
Wasp-class, but is the first of the class built with gas turbine engines and electric drive, as
well as other energy saving systems. (Source: NNS, 10/19/09)

LCS takes trial run
MOBILE, Ala. - The littoral combat ship Independence left its dock at Austal Tuesday for a
day at sea, according to Jim DeMartini, General Dynamics Corp. spokesman. The ship,
currently in builder's trials, is expected to head out at least one more time before it is
handed over the U.S. Navy in mid-November for final inspection. One of a new class of
shallow-water warships, it was built at Austal USA's Mobile shipyard as part of a team led
by General Dynamics. (Source: Mobile Press-Register, 10/14/09)

USS New York departing
NEW ORLEANS, La. – The USS New York is scheduled to leave the New Orleans area
Tuesday after more than three years of construction at Avondale. The 684-foot
amphibious transport dock ship, which contains more than seven tons of steel from the
World Trade Center, will head for its namesake city, where it will be commissioned Nov. 7.
Then it will move to its homeport of Norfolk, Va. The ship was built by Northrop Grumman’s
Avondale shipyard. (Source: New Orleans Times-Picayune, 10/13/09)

Mabus visits Northrop shipyard
PASCAGOULA, Miss. - Secretary of the Navy Ray Mabus toured Northrop Grumman
Shipbuilding’s shipyard in Pascagoula and the Naval Construction Battalion Center in
Gulfport Thursday. “The most impressive thing here is the quality of the workforce,”
Mabus said of the shipyard workers. Mabus, former governor of Mississippi who was
appointed to the secretary’s post in May, toured a variety of ships under construction,
including Gravely, San Diego, Waesche and Dewey. (Source: Globe Newswire, 10/08/09)

Bender creditors file complaint
MOBILE, Ala. - Bender Shipbuilding's unsecured creditors are worried over the shipyard's
plan to sell most of its Mobile assets, alleging that Bender is pursuing a deal that favors
management and would likely leave creditors out in the cold. The Official Committee of
Unsecured Creditors late Tuesday filed a limited objection. (Source: Mobile Press-
Register, 10/08/09)

Austal may have another union vote
MOBILE, Ala. - A union could get a third try at organizing Austal USA’s workers after an
administrative law judge ruled the shipyard committed unfair labor practices before an
April 2008 election. Austal said it is considering appealing the decision, released last
week, to the full National Labor Relations Board. If the shipbuilder does not appeal, the
decision will become binding and workers will vote for the third time in seven years on
whether they want to be represented by the Sheet Metal Workers International
Association. (Source: Mobile Press-Register, 10/07/09)

Cutter shines in acceptance trials
PASCAGOULA, Miss. — The Northrop Grumman-built Waesche, the second in a new
class of cutters, successfully completed its Coast Guard acceptance trials in the Gulf of
Mexico this week, the company said Friday. Waesche, under construction at the
Pascagoula shipyard, is the second in the U.S. Coast Guard’s Legend class, an eight-ship
national security cutter program. Delivery is expected in early November. The WMSL 751
performed well this week during testing of propulsion, electrical, damage control and
combat systems, the company said. (Source: Mobile Press-Register, 10/03/09)

Bender expected to have new owner
MOBILE, Ala. - Most of Bender Shipbuilding & Repair Co.'s Mobile operations will have a
new owner by Dec. 15. That’s according to documents obtained by the Press-Register
and the shipbuilder's chief executive, Tom Bender. The shipyard has hired New Orleans-
based Global Hunter Securities LLP to handle the sale of about 80 percent of its property
along the Mobile riverfront. (Source: Mobile Press-Register, 10/01/09)


SEPTEMBER 2009

Contract: Swiftships, $181M
Swiftships Shipbuilders LLC, Morgan City, La., is being awarded a $180,998,189 fixed-
price letter contract for the detail design and construction of nine patrol boats and
associated equipment and services for the Iraq Navy. The contract is for nine Swiftships
model 35PB1208E-1455 patrol boats along with six 30mm gun weapons systems, machine
gun mounts and cradles, spare parts, and contractor engineering technical services. Sixty
percent of the work will be performed in Morgan City, La., and 8 percent in Ocean
Springs, Miss. Other work sites are Detroit, Mich., and Charlottesville, Va., and is
expected to be completed by August 2012.  The Naval Sea Systems Command is the
contracting activity. (Source: DoD, 09/25/09)

VT Halter Marine set to hire 150
PASCAGOULA, Miss. - VT Halter Marine plans to hire 150 employees soon. The company
was awarded a second contract from OSG Ship Management to build a 350,000 barrel
articulated tug barge unit. The work should begin in November 2009, and be finished by
the middle of 2010. Halter is currently working on a similar vessel for the same company.
(Source: WLOX-TV, Mississippi Press, 09/23/09)

Supship command changes
PASCAGOULA, Miss. – Navy Capt. William J. Galinis has replaced Capt. Mary E. "Beth"
Dexter as commander of the Navy's Supervisor of Shipbuilding, Conversion and Repair,
Gulf Coast during a ceremony Friday at Northrop Grumman Shipbuilding, the Navy
announced. SUPSHIP, a field activity of the Naval Sea Systems Command, administers
ship construction contracts awarded to private shipyards across the Gulf Coast. (Source:
Mississippi Press, 09/19/09)

Navy changes LCS buying plans
The Navy has canceled plans to split a three-ship purchase of littoral combat ships in
2010 between two competitors in favor of a two-stage buying process. The Navy next year
wants to award to either General Dynamics of Lockheed-Martin a winner-take-all fixed
price contract for up to 10 ships by 2014. And in 2012 the Navy wants to open up the
competition to other shipbuilders and buy another five ships with the winning design.
Austal USA of Mobile, Ala., is part of the General Dynamics team. (Source: Mobile Press-
Register, 09/17/09)

Northrop’s Sugar sets retirement
LOS ANGELES – Ronald D. Sugar, chairman and CEO of Northrop Grumman since 2003,
has announced he'll retire in June 2010. Sugar will step down from his chairman and CEO
positions and the company's board of directors at the end of the year. He’ll continue as an
employee officer advising the company until his retirement date. Wesley G. Bush,
president and chief operating officer, will become CEO and president Jan. 1, 2010. Bush
was also elected to the Northrop Grumman board of directors, effective immediately.
(Source: Northrop Grumman, 09/16/09) Gulf Coast note: Northrop Grumman has a
number of operations in the Gulf Coast region.

Senate, House differ on ship buys
WASHINGTON – A Senate panel’s version of the defense spending bill for the upcoming
fiscal year differs from the House version in number and mix of Navy ships. The Senate
panel wants two littoral combat ships, a version of which is built by Austal USA in Mobile,
Ala. The House wants four. The Senate panel also wants two DDG-51 destroyers built by
Northrop Grumman in Pascagoula, Miss. That’s one more than in the House wants. The
Senate panel also provides money for Northrop Grumman to start construction on another
amphibious assault ship. The bill still has to go to the full Senate. (Source: Mobile Press-
Register, 09/12/09)

Signal wins grant for upgrade
PASCAGOULA, Miss. - A $2.5 million equipment upgrade may create up to 150 jobs at
Signal International's Pascagoula yard once the market improves, company leaders said.
With the help of a federal grant, Signal will purchase a profile cutting system, semi-auto
beveler, 750-ton brake press and roll form press. The grant will pay for about $1.6 million
of the upgrade, and Signal will pitch in $600,000. (Source: Mississippi Press, 09/10/09)

Contract: Lockheed Martin, $13.5M
Lockheed Martin Maritime Systems and Sensors, Moorestown, N.J., is being awarded a
$13,495,982 modification to previously awarded contract for management and
engineering services to maintain and modify the design of DDG 51 Class combat system
compartments and topside arrangements. The required services for DDG 51 Class ships
and CG 47 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. The Naval Sea Systems
Command, Washington Navy Yard, D.C., is the contracting activity. (Source: DoD,
09/04/09)


AUGUST 2009

Navy takes delivery of Dewey
The Navy has taken delivery of its 57th Arleigh Burke-class destroyer, the Dewey. The
9,500-ton ship built by Northrop Grumman in Pascagoula, Miss., completed its combined
super trial in June in the Gulf of Mexico. The Dewey, hull number DDG 105, is named for
Adm. George Dewey, the Navy hero of the Battle of Manila Bay in the Spanish-American
War. The Dewey’s commissioning is scheduled for December. (Source: Navy Times,
08/24/09)

New York handed over to Navy at 9:11
NEW ORLEANS - Northrop Grumman Ship Systems delivered the $1.2 billion ship that will
become the USS New York to the Navy at 9:11 a.m. Friday. This ship will be formally
named this fall. The ship has forged in its bow stem 7 1/2 tons of steel from the World
Trade Center, which collapsed during the Sept. 11, 2001, terrorist attacks. The fifth of 10
San Antonio-class landing platform dock ships, the New York will remain moored in the
Mississippi River for another two months before it is commissioned on Nov. 7 in New York
City. (Source: New Orleans Times-Picayune, 08/21/09)

Austal takes hit on earnings
A $23 million write-down on loans to bankrupt client Hawaii Superferry Inc. took a bite out
of annual earnings for Australian shipbuilder Austal Ltd. Austal earned $7.65 million in the
year that ended June 30, down 82 percent from the previous year. Austal runs a shipyard
in Mobile, Ala., that’s expected to play a big role in future growth through military
contracts. (Source: Mobile Press-Register, 08/22/09)

Contract: Northrop, $16M
Northrop Grumman Shipbuilding, Pascagoula, Miss., is being awarded a $15,978,754
modification to previously awarded contract to exercise options for the accomplishment of
follow yard class services for the DDG 51 Class AEGIS destroyer program and will provide
expert design, planning, and material support services for both DDG 51 ship construction
and modernization. Work will be performed in Pascagoula and is expected to be
completed by August 2010. The Naval Sea Systems Command, Washington, D.C., is the
contracting activity. (Source: DoD, 08/21/09)

Horizon delivers crew boat
MOBILE, Ala. - Horizon Shipbuilding delivered the 182-foot aluminum crew boat Isla San
Gabriel to a Mexican customer, part of a $17 million, two-vessel contract the Bayou La
Batre shipbuilder won in early 2008. A sister vessel is scheduled for delivery in October.
(Source: Mobile Press-Register, 08/21/09)

Atlantic Marine Holding CEO retires
MOBILE, Ala. - Ron McAlear is retiring as chief executive officer of Atlantic Marine Holding
Co., but will remain as a senior adviser to Atlantic Marine's board of directors. McAlear
came to Mobile in 2003 to run Atlantic Marine's local operations. It was purchased by J.F.
Lehman & Co., in 2006. Atlantic Marine has about 1,400 full- and part-time employees,
one of Mobile's largest employers. (Source: Mobile Press-Register, 08/20/09)

Cutter completes builder’s trials
PASCAGOULA, Miss. - The Northrop Grumman-built Waesche, second in a new class of
national security cutters, successfully completed builder's trials in the Gulf of Mexico this
week, the company announced. Propulsion, electrical, damage control and combat
systems were tested. Waesche, under construction at the Pascagoula shipyard, is the
second in the Coast Guard's Legend class, an eight-ship national security cutter program.
A third cutter is about 25 percent complete at the Pascagoula yard. (Source: Mississippi
Press, 08/19/09)

Barge-builder plans layoffs
A barge-building yard in St. Tammany Parish’s Madisonville will begin the first in a series
of layoffs next month in preparation for eventual closure. About 235 people work for
Trinity Marine Products, which builds tank barges for the offshore oil industry. The
company plans to complete eight barges already under construction. The first cuts involve
88 workers. (Source: Times-Picayune, 08/07/09)

Singapore Technologies 2Q report
Singapore Technologies Engineering reported its profit fell 9 percent for the second
quarter of 2009 to $75.91 million from the second quarter 2008. It’s the parent company
of VT Halter Marine, which has 1,500 workers at shipyards in Pascagoula, Moss Point and
Escatawpa, Miss., and ST Mobile Aerospace Engineering, which has 1,200 workers at
Brookley Field Industrial Complex in Mobile, Ala. (Source: Mobile Press-Register,
08/05/09)

Both LCS teams submit bids
Bids to build the next Littoral Combat Ships were submitted by both industry teams to the
Navy. Lockheed Martin’s proposal was sent July 31 and General Dynamics was sent by
the Aug. 3 deadline. The competition winner will receive two construction contracts and
the other team one for the ships in the 2010 budget, with a cost cap is $460 million per
ship. (Source: Defense News, 08/03/09) Gulf Coast note: The Lockheed team includes
Bollinger Shipyard of New Orleans and the General Dynamics team includes Austal USA
of Mobile, Ala.

Lockheed submits LCS FY10 proposal
The Lockheed Martin-led team submitted its proposal for the Littoral Combat Ship fiscal
year 2010 contract to the Navy July 31. A contract is expected to be awarded this coming
fiscal year for additional LCSs. The Navy is proceeding with a limited competition with
winners of the Flight 0 phase of the program, Lockheed Martin and General Dynamics.
(Source: Lockheed Martin via PRNewswire, 08/03/09) Gulf Coast note: Bollinger
Shipyards in New Orleans is part of the Lockheed team and Austal USA of Mobile, Ala., is
part of the General Dynamics team.


JULY 2009

LPD 21 has successful acceptance trial
AVONDALE, La. - The amphibious transport dock ship, LPD 21, returned to the Northrop
Grumman Avondale shipyard last week after a successful Navy acceptance trial, which
included tests of the propulsion, control, combat, damage control systems and more. The
ship, which will be named the USS New York, is the fifth in the San Antonio-class series.
The bow stem contains 7.5 tons of steel recovered from the World Trade Center after the
2001 terrorist attack. The ship is scheduled for commissioning in New York City Nov. 7,
2009. (Source: Northrop Grumman, 07/30/09)

First Lady to sponsor ship
PASCAGOULA, Miss. - First lady Michelle Obama will sponsor the third National Security
Cutter. Officials celebrated the ship’s construction Monday at keel laying ceremony. The
First Lady will christen the cutter at a Pascagoula ceremony next summer. The 418-foot
cutter, WMSL 752, is named in honor of Dorothy C. Stratton, the first female
commissioned officer in the Coast Guard. The cutter is more than 20 percent complete
and scheduled to be delivered in the summer 2011. (Source: Sun Herald, Mississippi
Press, 07/21/09)

Academy gets funding
PASCAGOULA, Miss. - Jackson County's Board of Supervisors have agreed to accept the
Mississippi Development Authority's nearly $20 million grant to build a maritime training
facility. The Hurricane Katrina community development block grant money will be used to
develop a shipbuilding academy to help local shipyards better train their employees.
Northrop Grumman will be the major tenant, but VT Halter Marine and Signal International
will also use the facility. (Source: Mississippi Press, 07/21/09)

LHA 6 keel ceremony held
PASCAGOULA, Miss – A keel authentication ceremony was held Friday for LHA 6, the
newest class of large-deck amphibious assault ships. LHA 6, named America, will replace
the Tarawa class and is slated for completion in 2013. Northrop has been working on the
ship for about three years, designing it and buying materials. LHA 6 will use many of the
same systems designed and built for the recently delivered USS Makin Island. (Source:
Mississippi Press, 07/18/09)

Group picks site for Ticonderoga
PASCAGOULA, Miss. - State-owned Lowery Island on the west bank of the Pascagoula
River is targeted as the site to moor the decommissioned USS Ticonderoga. Jack Hoover,
president of a group that wants to bring the ship to Pascagoula, announced the site at a
meeting Thursday. The city is planning a condominium, public marina and retail shopping
on the island, he said. Hoover said the Navy has given the group until October to submit
an application for the ship, which is scheduled to be scrapped. (Source: Mississippi Press,
07/10/09)

Halter Marine gets grants
PASCAGOULA, Miss. - VT Halter Marine received three grants totaling more than $2.87
million as part of the U.S. Department of Transportation’s Assistance to Small Shipyards
program. A total of 14 small shipyards in 10 states will receive $17.1 million in grants from
the Maritime Administration to make capital and infrastructure improvements for better
efficiency. (Source: Sun Herald, 07/09/09)

Bender owes $37.6M
MOBILE, Ala. - Bender Shipbuilding & Repair Co. owes its 20 largest unsecured creditors
more than $37.6 million, according to documents filed this week in U.S. Bankruptcy Court.
Bender has not yet revealed its debt-to-assets ratio in court. The 91-year-old Mobile
business filed for Chapter 11 reorganization a week ago, forced to take that action after
four of its creditors filed suit in an effort to force Bender's liquidation to pay debts.
(Source: Mobile Press-Register, 07/08/09)

LPD 21 finishes builder sea trials
NEW ORLEANS, La. – The Northrop Grumman-built New York, LPD 21, performed
builder's sea trials this week in the Gulf of Mexico. The ship's bow stem contains seven-
and-a-half tons of steel recovered from the World Trade Center following the terrorist
attacks of Sept. 11, 2001. LPD 21 is being built at the company's Avondale facility in
Louisiana. New York is the fifth amphibious transport dock ship in the San Antonio class of
amphibious assault force. The 684-foot, 105-foot-wide LPD transport dock ships are used
to transport and land Marines, equipment and supplies by embarked air cushioned or
conventional landing craft, expeditionary fighting vehicles, amphibious assault vehicles,
helicopters, and vertical take off and landing aircraft. (Source: Northrop Grumman,
07/02/09)

Bender files Chapter 11 bankruptcy
MOBILE, Ala. - Bender Shipbuilding & Repair Co. is seeking bankruptcy protection under
Chapter 11. The move comes after a group of creditors filed an involuntary petition to
force the shipyard into bankruptcy. Bender said it intends to continue operating as a full
service shipyard, though it will downsize and maintain a workforce of about 300 workers.
(Source: Mobile Press-Register, EnergyCurrent, 07/01/09)

LCS sea trial delayed
MOBILE, Ala. - The littoral combat ship Independence remained moored in Mobile
Tuesday, and lead contractor General Dynamics isn’t saying when the trimaran built by
partner Austal USA might head out for four days of sea trials. It was originally scheduled
to leave Monday, but a problem with the propulsion system delayed that. (Source: Mobile
Press-Register, 07/01/09)


JUNE 2009

Aegis destroyer completes “super trial”
PASCAGOULA, Miss. – The Aegis guided missile destroyer Dewey (DDG 105)
successfully completed its combined super trial last week in the Gulf of Mexico, paving the
way for delivery to the Navy later this summer. The destroyer built by Northrop Grumman
at its Gulf Coast facilities in Pascagoula is 510 feet and 9,500 tons. It has an overall beam
of 59 feet and a navigational draft of 31 feet. Four gas-turbine propulsion plants power
the ship to speeds above 30 knots. (Source: Northrop Grumman, 06/30/09)

Maritime center dedication set
MOBILE, Ala. – Gov. Bob Riley will be on hand Monday to dedicate the 22-acre site of the
Maritime Science Center, which is scheduled to open in a year. The $12 million facility will
train up to 700 people annually in trades for the shipbuilding industry. Local shipyards
have said that, despite the struggling economy, they anticipate needing even more
workers. Construction of the state-run center begins in October. (Source: Mobile Press-
Register, 06/28/09)

LCS builder’s trial set
MOBILE, Ala. - The littoral combat ship Independence is set to go to sea for the first time
Monday for a builder’s trial. Built by Austal USA, the aluminum trimaran ship has been
under construction for more than three years. Acceptance trials are scheduled for August,
with delivery slated for September. Austal is part of the General Dynamics LCS team. A
rival team led by Lockheed Martin has completed its own version of the shallow-water
vessel built to a different design. (Source: Mobile Press-Register, 06/27/09)

More competition for LCS?
The House approved a spending bill that would open the littoral combat ship program to
more competition if costs aren’t contained by the two current teams. Under the $550
billion measure, the Navy would get enough money to buy three vessels in fiscal 2010
from Lockheed Martin and General Dynamics, which is working with Austal USA's shipyard
in Mobile. If the teams fail to meet a cost ceiling of $460 million per ship, the Navy could
develop a "technical data package" that could be shopped around to new bidders,
according to the legislation. (Source: Mobile Press-Register, 06/26/09)

Marine supplier upsizes
MOBILE, Ala. - W&O of Jacksonville, Fla., a subsidiary of PON Holdings B.V. of the
Netherlands, has moved from its facility at Brookley Field Industrial Complex to a 40,000-
square-foot building on Rangeline Road in Theodore. W&O said growth over the past
three years led to the move. W&O supplies marine valves, pipe fittings, engineered
products and valve automation tools, and has been in Mobile 22 years. (Source: Mobile
Press-Register, 06/25/09)

Ship outfitted for NOAA
PASCAGOULA, Miss. - The National Oceanic and Atmospheric Administration's newest
fisheries survey vessel is being outfitted at VT Halter Marine and should be ready in July.
The 208-foot Pisces is docked in Bayou Casotte and will study, monitor and collect data
on sea life and ocean conditions. It's designed for 40-day missions and will carry about 21
crew and 15 scientists from the NOAA Fisheries Service's Mississippi lab in Pascagoula.
(Source: Mississippi Press, 06/20/09)

MARAD to repossess ferries
MOBILE, Ala. - The U.S. Maritime Administration plans to repossess and sell a pair of fast
ferries built at Austal USA for Hawaii Superferry Inc., which owes $136.8 million to the
agency. MARAD guaranteed the loans used to buy the ferries. The ferries are now
docked at Atlantic Marine in Mobile. MARAD needs approval from bankruptcy court in
Delaware. Hawaii Superferry Inc. filed for Chapter 11 reorganization May 30. (Source:
Mobile Press Register, 06/24/09)

Contract: Northrop, $213.8M
Northrop Grumman Shipbuilding Inc., Pascagoula, Miss., is being awarded a
$213,772,399 modification to previously awarded contract for the procurement of long
lead time materials in support of LPD 26. The Navy is modifying the contract for advanced
procurement or manufacture, inspection, test, storage and maintenance of LLTM items
and accomplishment of preconstruction activities to support the orderly construction of
LPD 26, the tenth LPD 17 Class ship. Work will be performed in Pascagoula, Miss., and is
expected to be completed by December 2013. The Naval Sea Systems Command,
Washington, D.C., is the contracting activity. (Source: DoD, 06/23/09)

Contract: Austal, $99.6M
Austal USA, Mobile Ala., was awarded a $99,557,548 modification to previously awarded
contract for long lead time material for Ships 2 and 3 of the Joint High Speed Vessel
Program. This contract provides for main propulsion engines, aluminum, waterjets,
reduction gears, generators, and other components to support construction of JHSV
Ships 2 and 3, commencing in June 2010. The LLTM procured or manufactured for
construction or installation in JHSV 2 and 3 will be subsumed with their associated costs
into their respective ship construction line items upon award of construction contracts for
JHSV 2 and 3. Work will be performed in Detroit, Mich., (38 percent); Chesapeake, Va.,
(18 percent); Henderson, Australia, (13 percent); Gulfport, Miss., (10 percent);
Ravenswood, W.Va., (9 percent); and Ft. Lauderdale, Fla., (4 percent); Mobile, Ala., (3
percent); Auburn, Ind., (2.6 percent); Winter Haven, Fla., (1 percent); Gardena, Calif., (1
percent); and Davenport, Iowa, (.4 percent). Work is expected to be complete by July
2013. The Naval Sea Systems Command is the contracting activity. (Source: DoD,
06/19/09)

Creditors push bankruptcy
MOBILE, Ala. - Three creditors of Bender Shipbuilding & Repair Co. filed an involuntary
bankruptcy petition in federal district court to have the shipyard's assets liquidated in an
attempt to get money they say they are owed. Bender called the assertions invalid, and
the company said it expects the case to be dismissed. (Source: Mobile Press-Register,
06/11/09)

LCS given thumbs up
The Pentagon's top officer offered a thumbs up Tuesday for the littoral combat ship. Adm.
Michael Mullen, chairman of the Joint Chiefs of Staff, said he needs them deployed today.
It was in response to a question at a hearing of the Senate defense appropriations
subcommittee. Austal USA's shipyard in Mobile, Ala., is building a version of the LCS.
(Source: Mobile Press-Register, 06/10/09)

Signal finishes driller upgrade
PASCAGOULA, Miss. - Signal International has completed the final phase of the upgrade
of Frontier Drilling semisubmersible Frontier Driller ahead of schedule. The upgrade and
modernization program was performed at the East Bank yard in Pascagoula. The rig has
now returned to drill for Shell on Viosca Knoll Block 783 in the Gulf of Mexico. (Source:
Energy Current, 06/04/09) Signal International is one of the largest marine and fabrication
companies in the Gulf of Mexico with two production facilities in Pascagoula and four in
Texas.


MAY 2009

Suit filed against Bender
MOBILE, Ala. - Bender Shipbuilding & Repair faces another lawsuit stemming from a
$76.5 million contract to build three vessels for GulfMark Offshore Inc. Engine supplier
Louisiana Machinery Co. LLC of Reserve, La., said it has not been fully paid for engines
delivered to Bender and intended for the GulfMark ships. (Source: Mobile Press-Register,
05/28/09)

Contract: US Marine Inc., $61.6M
United States Marine, Inc., Gulfport, Miss., is being awarded a $61,562,641 contract for
detail design and construction of 10 Mark V Patrol Boats for the Kuwaiti Navy under the
Foreign Military Sales Program. The vessel is designed for coastal patrol and interdiction,
and other special operations at sea. Work will be performed in Gulfport, Miss., and is
expected to be completed by June 2013. The Naval Sea Systems Command, Washington
Navy Yard, D.C., is the contracting activity. (Source: DoD, 05/22/09)

LCS radar tested
MOBILE, Ala. - A Coast Guard jet made six low passes – 300 to 500 feet – over the Mobile
River near Austal USA Thursday, allowing radar tests aboard the littoral combat ship
Independence. Austal is part of a General Dynamics Corp.-led team competing to build
dozens of the LCS warships. The Independence and a second LCS on order have
aluminum trimaran hulls. A team led by Lockheed Martin Corp. delivered the first of its
steel-hulled ships to the Navy in the fall and is working on a second vessel. (Source:
Mobile Press Register, 05/22/09)

Mabus confirmed as Navy secretary
Former Mississippi Gov. Ray Mabus was confirmed as secretary of the Navy. The Senate
voted unanimously Monday night to confirm Mabus, who succeeds Donald C. Winter.
Mabus served in the Navy from 1970-72 as a surface warfare officer, and was Mississippi
governor from 1988-92. (Source: AP via Sun Herald, 05/19/09)

VT Halter Marine names new chief
PASCAGOULA, Miss. - VT Halter Marine has appointed William E. "Bill" Skinner as chief
executive officer and Paul J. Albert as chief operating officer. Former CEO Boyd E.
"Butch" King, who was recruited to lead the shipbuilder out of bankruptcy in 2002, died
April 20 of a heart attack at the company's headquarters. Halter is a subsidiary of
Alexandria, Va.-based VT Systems, which is owned by Singapore Technologies
Engineering.

Bender wins $2.5M contract
MOBILE, Ala. - Bender Shipbuilding & Repair Co. won a $2.5 million contract to work on a
pair of 632-foot Department of Transportation Maritime Administration cargo vessels. The
two vessels are the Cape Victory and the Cape Vincent, both roll-on, roll-off vessels that
carry wheeled and tracked vehicles. (Source: Mobile Press-Register, 05/19/09)

Special ops craft launched
GULFPORT, Miss. – United States Marine Inc. has launched the first of two 82-foot Mark
V Special Operations Craft awarded by the Naval Sea Systems Command. The first craft
will undergo dock and sea trials before its delivery in July. The second will be launched in
August. The two craft will eventually be used by the Bahrain navy through a Foreign
Military Sales program. The aluminum hull, deck and cabin top are built by Trinity Yachts
at its New Orleans facility. The sections are then transported to USMI’s facility in Gulfport
for final assembly, outfitting, painting, sea trials and delivery. (Source: The Sun Herald,
05/16/09)

Coast Guard pondering UAVs
The U.S. Coast Guard is still in the market for an unmanned aerial system to extend the
surveillance reach of the new National Security Cutter fleet, the head of acquisition for the
service said May 11. The Coast Guard ended its planned vertical takeoff UAV program,
and has been monitoring other UAV programs, said Rear Adm. Gary Blore, assistant
commandant for acquisition. He said the Navy’s Fire Scout appears to be the farthest
along but "we’re still waiting for [maritime] radar to be integrated on Fire Scout." (Source:
Aviation Week, 05/12/09) Gulf Coast note: Fire Scouts are built in part in Moss Point,
Miss., and the first National Security Cutter was built in Pascagoula, Miss.

Christening scheduled
PASCAGOULA, Miss. – The USS Gravely, Northrop Grumman's 27th Aegis guided missile
destroyer, will be christened Saturday at Northrop's shipyard in Pascagoula.
The ship is named for the late Navy Vice Adm. Samuel L. Gravely Jr., the Navy's first black
admiral. Gravely died in 2004. The USS Gravely will have a crew of 276 officers and
enlisted personnel. (Source: AP via Sun Herald, 05/12/09)

Work done on two rigs
PASCAGOULA, Miss. – Signal International said Monday that two rigs owned by Diamond
Offshore are back in service after simultaneous work at Signal’s Pascagoula and Port
Arthur, Texas, sites. The amount of the contract for the work was not released. Signal
International is one of the largest marine and fabrication companies in the Gulf of Mexico
region. It has two production facilities in Pascagoula and four in Texas. (Source: The Sun
Herald, 05/11/09)

Contract: Northrop, $77.3M
Northrop Grumman Shipbuilding Inc., a sector of Northrop Grumman Corp., Newport
News, Va., is being awarded a $77,266,923 modification to previously awarded contract
for procurement of additional long lead time materials in support of the construction
preparation efforts for the second aircraft carrier of the Gerald R. Ford Class (CVN 79).
Work will be performed in Newport News, Va., and is expected to be completed by October
2010. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting
activity. (Source: DoD, 05/11/09) Gulf Coast note: Northrop Grumman also has shipyards
in Pascagoula and Gulfport in Mississippi and New Orleans, La.

Shipbuilding proposal holds no surprises
The defense budget proposal unveiled Thursday includes $1.9 billion to buy three Littoral
Combat Ships and $2.2 billion for one DDG-51. Two teams, General Dynamics and
Lockheed Martin, will compete to build the LCS ships, while the DDG-51 is likely to be built
by Northrop Grumman in Pascagoula. The General Dynamics LCS team includes Austal
USA of Mobile, Ala. (Source: Mobile Press-Register, 05/08/09)

Austal, Baldwin honored
Site Selection, a magazine that tracks economic development projects, recognized Austal
USA and the Baldwin County Economic Development Alliance in its May issue. Shipbuilder
Austal received an honorable mention in the top North American deals category, and the
Baldwin alliance received an honorable mention among Top Economic Development
Groups of 2008. Recent accomplishments include Segers Aero Corp., a $7 million project
that created 100 new jobs. (Source: Mobile Press-Register, 05/05/09)

Small-boat threat system tested
EGLIN AIR FORCE BASE, Fla. – NetFires LLC, a joint venture between Raytheon and
Lockheed Martin, conducted the second captive flight test of the Non Line-of-Sight-
Launch System Precision Attack Missile. The system is also one of the key Littoral
Combat Ship mission modules to combat small-boat threats. The LCS Mission Module can
fire as many as 45 PAM missiles from three container launch units. With a range greater
than 25 miles, the PAM missile gives the LCS an increased surface warfare weapon
capability. (Source: Raytheon, 05/04/09) Gulf Coast note: The Austal USA shipyard in
Mobile, Ala., is building LCS ships for the Navy.

Austal to build another LCS
The Navy on Friday awarded a contract to a Maine’s Bath Iron Works-led team for the
construction of Coronado (LCS 4), the second Littoral Combat Ship to feature a high-
speed trimaran hull. The 419-foot surface combatant ship will be manufactured by Austal
USA in Mobile, Ala. It’s scheduled for delivery to the Navy in May 2012. Bath Iron Works is
a subsidiary of General Dynamics. (Source: PRNewswire, 05/01/09)


APRIL 2009

Command shipping out
NEW ORLEANS, La. – The Navy Reserve Forces Command will officially pull up anchor
Friday for its new home in Norfolk, Va., ending 36 years of a national naval headquarters
presence in New Orleans. For the first time in almost a century the Navy will not have an
admiral based in the city. The Navy remains in the region through the Naval Air Station-
Joint Reserve Base in Belle Chasse, the Space and Naval Warfare Systems Center near
the University of New Orleans and the Marine Forces Reserve. The closing is part of the
2005 Base Realignment and Closure round. (Source: New Orleans Times-Picayune,
04/25/09)

VT Halter chief dies
PASCAGOULA, Miss. – The chief executive officer of VT Halter Marine, Boyd "Butch"
King, died Monday at Singing River Hospital. King, 65, was appointed CEO in 2003. He
retired as a brigadier general in 1998 after 35 years of service in the Army. VT Halter
Marine operates one yard at Pascagoula and two at Moss Point, building commercial and
government vessels. (Source: Mississippi Press, 04/21/09)

Makin Island delivered to Navy
PASCAGOULA, Miss. - Northrop Grumman Shipbuilding sector delivered to the Navy on
Thursday the amphibious-assault ship Makin Island (LHD 8) during a short ceremony on
the vessel's flight deck. Makin Island is the eighth USS Wasp-class amphibious assault
ship built in Pascagoula. It’s 844 feet long, 106 feet wide and has a speed in excess of 20
knots. It has the first gas turbine/electric-powered propulsion system ever used on large
deck amphibious assault ships. (Source: Northrop Grumman, 04/16/09)

Austal trims workforce
MOBILE, Ala. - Austal USA laid off 15 employees Friday and plans to cut another 47 jobs.
The cuts are due to Austal finishing work on a second ferry and a contract it expected
falling through. After the layoffs, Austal will employ 1,067 workers at its Mobile River
shipyard. (Source: Mobile Press Register, 04/11/09)

Mobile maritime museum breaks ground
MOBILE, Ala. – Groundbreaking was held Thursday for GulfQuest, a $36 million maritime
museum on the downtown Mobile waterfront. GulfQuest’s longer name is the National
Maritime Museum of the Gulf of Mexico. The museum will be between the Convention
Center and Alabama cruise terminal. The museum, slated to open in 2011, will feature
interactive exhibits. (Source: Mobile Press-Register, 04/09/09) Gulf Coast note:
Pensacola, Fla., also hopes to build a maritime museum at a proposed multi-purpose
maritime park.

IG raises Navy reporting issues
The Navy wrongly reported tens of billions of dollars in shipbuilding equipment as
expenses instead of construction costs, the Pentagon Inspector General says. The IG
also questions the Navy’s system of ship evaluation and says some of the service’s
internal controls are lacking. (Source: Aviation Week, 04/09/09)

Northrop, GD reach ship agreement
The New York Times is reporting that Northrop Grumman and General Dynamics agreed
on Wednesday to a deal clearing the way for three DDG-1000 Zumwalt-class destroyers
to be built at GD-owned Bath Iron Works in Maine. The newspaper cites Pentagon
officials. Northrop, which planned to build one of the destroyers in Pascagoula, Miss., will
contribute major components to the three vessels. In return, Northrop will restart
production of DDG-51s, an older model destroyer, in Pascagoula. Secretary of Defense
Robert Gates Monday said that if the companies could not reach an agreement, the Navy
would only by one of the stealthy DDG-1000s. (Source: New York Times, 04/08/09)

Fire Scout preps for final exam
Fire Scout unmanned helicopters will be ready for their first deployment later this year,
paving the way to full-rate production, possibly before 2010. A story in the April issue of
Seapower said two Fire Scouts will be aboard the guided missile frigate USS McInerney
when it deploys with the Fourth Fleet to the Southern Command’s area of operations. Fire
Scouts, built in part in Moss Point, Miss., were intended for use on Littoral Combat Ships,
but delays in that program prompted the Navy to test the system on a frigate. (Source:
Seapower, April 2009) Gulf Coast note: Austal USA in Mobile, Ala., is building one of the
LCS prototypes.

Gates wants just 3 DDG-1000s
Defense Secretary Robert Gates affirmed the Pentagon’s intent to end production of the
DDG-1000 Zumwalt destroyers at no more than three ships, but he wants them all built by
Bath Iron Works in Maine. He also wants to restart production of the DDG-51 Arleigh
Burke class at Northrop Grumman' shipyard in Pascagoula, Miss. Gates also announced
plans to order three littoral combat ships instead of two in the coming fiscal year. Austal
USA in Mobile is building one of those ships. (Source: Mobile Press-Register, 04/06/09)

Cargo ships to park at former base
PASCAGOULA, Miss. - A New England company will park two cargo ships at the former
naval base on Singing River Island to be on call for the government in case of a national
emergency. Jackson County Port Authority Tuesday approved a sublease contract with
Reading, Mass.-based Darkwater Marine Services to berth the ready reserve fleet
vessels. The agreement goes to the Jackson County Board of Supervisors on Monday.
(Source: Mississippi Press, 04/01/09)


MARCH 2009

Mabus tapped as Navy secretary
Ray Mabus, former governor of Mississippi, is being tapped to be secretary of the Navy.
He was governor from 1988 to 1992 and was President Clinton's ambassador to Saudi
Arabia. He endorsed Obama before the 2008 primary season and campaigned on his
behalf. Mabus has spent the last several years in business. Mabus served in the Navy as
a surface warfare officer on the Rhode Island-based USS Little Rock. The nomination has
to be confirmed by the Senate. (Source: Washington Post, 03/28/09)

Northrop has $23B backlog
ST. MARTIN, Miss. - Northrop Grumman Shipbuilding has a $23 billion backlog of
business and nine ships to be delivered within the next year. That’s according to
president Mike Petters, keynote speaker at the Jackson County Economic Development
Foundation's Spring Investors Meeting. Housing and insurance costs remain the biggest
challenges for the company locally, Petters said. (Source: Mobile Press-Register,
03/27/09)

Training, maintenance concerns raised
WASHINGTON, D.C. – The chairman of the House Armed Services Readiness
Subcommittee has raised concerns about the Navy’s manning, training and maintenance.
Rep. Solomon Ortiz of Texas cited recent collisions, grounds and a fatal accident, as well
as 10 ship commanders being relieved of duty for failure to maintain training over the past
three years. (Source: Mobile Press-Register, 03/26/09)

Makin Island Navy sea trials completed
PASCAGOULA, Miss. – The amphibious assault ship Makin Island, LHD 8, has
successfully completed Navy acceptance sea trial in the Gulf of Mexico. The builders sea
trial was in February. The ship has the first gas turbine/electric-powered propulsion
system ever used on large deck amphibious assault ships. Makin Island is 844 feet long
and 106 feet wide and weighs 42,800 tons. Its 70,000 horsepower hybrid propulsion
system will drive it to speeds in excess of 20 knots. It’s designed to transport a force of
almost 2,000 Marines and use helicopters, landing craft and amphibious assault vehicle.
Makin Island is scheduled for commissioning at its San Diego homeport in October 2009.
(Source: Northrop Grumman, 03/20/09)

Contract: Lockheed, $49.9M
Lockheed Martin Corp., Maritime Systems and Sensors, Integrated Defense
Technologies, Baltimore, Md., is being awarded a fixed price contract not-to-exceed
$49,877,689 for FY08 MK 41 Vertical Launching System production and delivery
requirements. The MK41 VLS program is integral to the navies of nine allied and friendly
foreign nations. This contract combines purchases for the U.S. Navy and the governments
of Turkey and Australia under the Foreign Military Sales Program. Fourteen percent of
the work will be performed in Fort Walton Beach, Fla., 64 percent in Baltimore, Md., 19
percent in Minneapolis, Minn., 2 percent in Eagan, Minn., and 1 percent in Virginia Beach,
Va. Work is expected to be completed by December 2012.  The Naval Sea Systems
Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/20/09)

Contract: Rolls-Royce, $5.7M
Rolls-Royce Marine International Inc., Walpole, Mass., is being awarded a $5,672,842
cost plus fixed fee contract for a Compact High-Power High-Density Waterjet. The
objective of this contract is for research to implement the waterjet technology developed
in Phase I to resolve the anticipated cavitation erosion issues. This includes the
preparation of the detailed design and fabrication of two full-scale waterjet prototypes for
demonstration. Seven percent of the work will be done in Pascagoula, Miss., 90 percent in
Walpole and 3 percent in Sweden. Work is expected to be completed September 2011.
The Office of Naval Research, Arlington, Va., is the contracting activity. (Source: DoD,
03/19/09)

Contract: C&G Boat, $17.6M
C&G Boat Works, Inc., Mobile, Ala., was awarded a $17,584,236 modification to
previously awarded contract to exercise an option to construct two Yard Patrol Training
Craft used to train midshipmen at the U.S. Naval Academy. Work will be performed in
Mobile and is expected to be completed by March 2011. The Naval Sea Systems
Command, Washington, D.C., is the contracting activity. (Source: DoD, 03/18/09)

Study: Stretch out LCS production
WASHINGTON, D.C. – The Navy should consider stretching out production of the littoral
combat ship past the planned 2019 cutoff, according to a 90-page report released by the
Center for Strategic and Budgetary Assessments. The military wants to build 55 of the
close-to-shore vessels as replacements for vessels being phased out. Austal USA's
shipyard in Mobile is nearing completion of one LCS prototype. (Source: Mobile Press-
Register, 03/18/09)

Bender, customer reach agreement
MOBILE, Ala. - Bender Shipbuilding & Repair Co. has reached an agreement with one of
its largest customers, Overseas Shipholding Group, to cancel millions of dollars in
contracts. The settlement ends both parties' obligations under three contracts signed in
2005. The canceled contracts include six tug-barge combinations and two tugs, work
valued in excess of $500 million. The problem has been repeated delays, which Bender
blamed on workforce and supply issues created by Hurricane Katrina. (Source: Mobile
Press-Register, 03/17/09)

Contract: Northrop, $31.8M
Northrop Grumman Shipbuilding Inc., Pascagoula, Miss., is being awarded a $31,800,000
basic ordering agreement for Post-Shakedown Availability for DDG 51 Class Destroyers.
The orders to be issued are for PSA planning and support services and will include
advance planning, engineering support, on-site engineering liaison, craft assistance, the
ordering and processing of required material in support of PSAs. If necessary, orders may
be issued to NGSB for PSA planning and support and emergent industrial availabilities for
DDG 51 Class Destroyers built by Bath Iron Works Corp. if BIW is unable to perform the
work. Work will be performed in Pascagoula, Miss. (40 percent) and in the ships'
homeport (60 percent), which may include Norfolk, Va.; San Diego, Calif.; and Mayport,
Fla., and is expected to be completed by September 2012.  The Naval Sea Systems
Command, Washington, D.C., is the contracting activity (Source: DoD, 03/16/09)

Navy presses for littoral ships
Navy officials pressed their case to buy more than 50 new littoral warships despite
frustration on Capitol Hill over ballooning costs and the Navy’s lack of future planning for
the ship program. Navy officials told the House Armed Services panel Tuesday that they
are committed to buying 55 Littoral Combat Ships and to cutting the cost of the ships after
the price of the first two more than doubled. But Navy officials were met with skepticism
from lawmakers who grilled them. (Source: The Hill, 03/10/09)

Contract: LPI, $7.3M
LPI Technical Services, Chesapeake, Va., is being awarded a $7,315,330 contract to
provide engineering and technical services for shipboard systems and equipment
associated with firefighting, damage control, and personnel protection. About three
percent of the work will be done in Pascagoula, Miss., and the rest in Norfolk, Va., (30
percent), San Diego, Calif., (30 percent), various unspecified locations (14 percent),
Mayport, Fla., (10 percent), Pearl Harbor, Hawaii, (10 percent), and Ingleside, Texas, (3
percent). Work is expected to be completed by March 2012. The Naval Surface Warfare
Center, Panama City Division, Panama City, Fla., is the contracting activity (Source: DoD,
03/09/09)

OSG wants to cancel Bender contracts
MOBILE, Ala. – Overseas Shipbuilding Group wants to cancel millions of dollars in
contracts with Bender Shipbuilding & Repair. Bender said Wednesday it is weeks away
from resolving the dispute. A Bender executive said the problem stems from repeated
delays in delivering six tug-barge combinations and two tugs. Much of the blame is placed
on materials and workforce issues created by Hurricane Katrina. (Source: Mobile Press-
Register, 03/05/09)


FEBRUARY 2009

$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 shipbuilders 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, 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,
according to Center for Strategic and Budgetary Assessments analyst Robert Work. He
says the 313-ship fleet plan would leave the service lacking capabilities to meet demands
of current challenges. Among his recommendations: begin 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 the DDG-51 program.
(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.

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)

Special boat team gets new digs
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. (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. It’s designed to transport and land a Marine Expeditionary Unit
ashore 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’s
plan is 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

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 shipyard in Pascagoula, Gov. Haley Barbour told about
100 people at the second annual Gulf States Shipbuilders Consortium in Mobile. He said
ground would be broken in the spring. Mississippi Gulf Coast Community College would
operate the facility. It could ultimately be owned by either the college or county. The new
training center will collaborate with a similar, $10 million to $12 million facility that
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)


JANUARY 2009

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
companies. 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 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 funding
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. Funds reflect Northrop Grumman's workforce. The schools that received grants
are Phillips Preparatory School, Mobile, Ala., and in Mississippi Magnolia Junior High,
Moss Point, Gautier Middle School, Gautier, Hancock Middle School, Hancock County,
and North Gulfport Middle School, 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 in 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, fabricator of ship parts, 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. It’s 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. The contract covers the first of three Noble
drillships scheduled for upgrades. 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 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.

Millennium bought by Atlantic Marine
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)