DECEMBER 2011

DDG-1000: Testbed or not?
Is the DDG-1000 Zumwalt-class destroyer a science project testbed or a technologically
advanced destroyer needed by the fleet? That’s the issue raised in a story by Aviation
Week, which points out that the answer depends on who is asked. The ship being built by
General Dynamics Bath Iron Works in Maine is using a lot of new technologies, including a
hybrid drive, composite deckhouse and new guns, and construction is running ahead of
schedule. (Source: Aviation Week, 12/28/11) Gulf Coast note: Ingalls Shipbuilding’s
Composites Center of Excellence in Gulfport, Miss., is building the Zumwalt’s integrated
composite deckhouse, helicopter hangars and parts of the ship’s peripheral vertical launch
systems.

Ingalls, subcontractors cited
Ingalls Shipyard in Pascagoula, Miss., and five subcontractors have been cited by the
Occupational Safety and Health Administration for 50 safety and health violations. OSHA
proposed a penalty of $176,444. Violations included blocked exits, tripping and fall hazards
and more. The companies have up to 15 business days to appeal the citations. (Sources:
multiple, including Sun Herald, Mississippi Press, 12/28/11)

Navy gets nod for ferries
The Navy received approval to spend up to $35 million to buy both Austal USA-built super
ferries from the Maritime Administration. The Huakai and Alakia, both built in Mobile, Ala., will
be transferred to the Navy if the bill is signed by the president. The ferries were originally
built to transport people and goods around the Hawaiian islands. (Source: Mobile Press-
Register, Virginian Pilot, 12/23/11)

Shipbuilder adding 500 workers
PANAMA CITY, Fla. -- Eastern Shipbuilding Group is adding 500 new jobs to fill two new
contracts. The company needs to extra worker because of two contracts to build 13 supply
vessels. One is for Boldini S.A., and the other for Hornbeck Offshore. The company is one
of the largest employers in Bay County. (Source: Panama City News Herald, 12/20/11)

Contract: Austal Chartering, $8.2M
Austal Hull 130 Chartering LLC, Mobile, Ala., is being awarded an $8,225,850 fixed-price
contract for the worldwide charter of one U.S.-flagged passenger/cargo ferry. The ferry will
support the Marine Corps Third Marine Expeditionary Force. This contract includes three six-
month option periods, which, if exercised, would bring the potential value of this contract to
$30,321,200. Work will be performed at sea in the Far East, and is expected to be
completed by August 2012; with options exercised, by January 2014. This contract was
competitively procured via Navy Electronic Commerce Online and Federal Business
Opportunities websites, with three offers received. Commander, Military Sealift Command,
Washington, D.C., is the contracting activity. (Source: DoD, 12/21/11)

Contract: Alion, $73.2M
Alion Science and Technology, Burr Ridge, Ill, has been awarded a $73,238,387 not-to-
exceed letter contract for professional support services in support of surface warfare fleet
support. This contract is a bridge contract intended to continue professional support
services in support of surface warfare fleet support during the interim between the expiration
of current, competitively awarded, SEAPORT-e contract, N00024-01-D-7013-0021, and the
award of a follow-on, competitively awarded SEAPORT-e contract. Work is expected to be
performed in Washington, D.C. (56 percent); Norfolk, Va. (23 percent); San Diego, Calif. (6
percent); Pascagoula, Miss. (6 percent); Bath, Maine (3 percent); Mayport, Fla. (2 percent);
Japan (2 percent) and other locations less than 1 percent (2 percent) and is expected to be
completed by November 2012. Contract funds in the amount of $22,911,792 will be provided
at time of award and will expire at the end of the current fiscal year. The Naval Sea Systems
Command, Washington, D.C., is the contracting activity. (Source: DoD, 12/20/11)

LPD 22 delivered to Navy
PASCAGOULA, Miss. -- Huntington Ingalls Industries delivered the company's sixth
amphibious transport dock, San Diego (LPD 22), to the U.S. Navy at a brief ceremony at
Ingalls Shipbuilding Monday. The ship recently completed acceptance sea trials with the
Navy's Board of Inspection and Survey observing. Ingalls' test and trials team tested the
ship's main propulsion, steering, communications suite and deck missions systems. Some of
the crew members were aboard for acceptance trials; the full crew will move aboard the ship
the first week of January. The 684-foot long LPD 22 is scheduled to be commissioned in the
spring of 2012 in San Diego. The principal mission is to deploy the combat and support
elements of Marine Expeditionary Units and Brigades. (Source: Huntington Ingalls, 12/19/11)

Contract: Austal, $7.9M
Austal USA, Mobile, Ala., is being awarded a $7,917,425 modification to previously awarded
contract to exercise an option for core Littoral Combat Ship (LCS) class services for the LCS
program. Austal USA will assess engineering, baseline, and configuration management
services in support of the basic construction, post delivery, test and trials phases of the LCS
class. Work will be performed in Mobile, Ala. (30 percent); Pittsfield, Mass. (30 percent);
Malvern, Pa. (20 percent); Newport News, Va. (13 percent); and various locations of less
than two percent each, totaling (7 percent). Work is expected to be completed by December
2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.
(Source: DoD, 12/19/11)

Training academy named for Barbour
PASCAGOULA, Miss. - A maritime training facility being built at Ingalls Shipbuilding will be
named after Gov. Haley Barbour. Work on the 76,000-square-foot Haley Reeves Barbour
Maritime Training Academy could begin as early as January and completed in 18 months.
The academy, funded through a Hurricane Katrina community development block grant, is
meant to provide a skilled workforce and help Ingalls expand its two- to four-year apprentice
program to about 1,000 students. (Source: Mississippi Press, 12/16/11)

Mobile ranked 34 in Milken list
Mobile, Ala., is ranked 34, Pensacola, Fla., 73, and New Orleans 101 in the 2011 Milken
Institute Best-Performing Cities Index of 200 large metro areas. All three moved up in the
index, designed to show performance of 379 large and small metro areas in creating and
sustaining jobs and economic growth, including technology growth. Mobile last year was 59,
Pensacola 116 and New Orleans 123. In the list of 179 small metro areas, Pascagoula,
Miss., is ranked 40, Panama City, Fla., is 73, Fort Walton Beach, Fla., is 75, and Gulfport-
Biloxi, Miss., 79. Gulfport's ranking is an improvement over last year's 101 ranking.
Pascagoula, Panama City and Fort Walton Beach dropped from 26, 49 and 73, respectively.
(Source: Tcp, 12/15/11) Milken data link

South Miss hotspot for defense jobs
A new report ranks South Mississippi as one of the top five less-known regions in the
country for defense jobs. The report released Tuesday by ClearanceJobs.com said defense
spending, notably in shipbuilding and aerospace, helped rebuilding efforts after Hurricane
Katrina. The report said South Mississippi has jobs for rocket scientists, oceanographers,
cyber-security personnel, geospatial analysts, technical trainers and test engineers. South
Mississippi is home to NASA's Stennis Space Center, and the Navy is a big tenant. It's also
home to the Navy Seabees, Keesler Air Force Base and major shipbuilding activities.
Detroit, Omaha, Neb., Seattle, and Mohawk Valley in upstate New York also were named in
the top five. (Source: Sun Herald, PRNewswire, 12/13/11)

BAE to provide DDG comm network
ST. INIGOES, Md. -- BAE Systems has received a $37 million contract to design, install and
test onboard radio communications and network capability for the U.S. Navy’s new DDG 113
and DDG 114 destroyers, both being built by Ingalls Shipbuilding in Pascagoula, Miss. The
installed technology will include multi-spectrum radio sets, antenna systems and baseband
switching, as well as data-link modems and message distribution services. BAE Systems has
provided onboard communications for 62 destroyers and 27 cruisers equipped with the
Aegis combat system. Work will be done primarily at Navy facilities in St. Inigoes and at
nearby BAE Systems offices. The systems will be installed at shipbuilder sites in
Pascagoula, as well as Bath, Maine. (Source: BAE Systems, 12/08/11)

Undersea robots get big picture
ARLINGTON, Va. – Underwater robots that can make their own decisions? According to the
Office of Naval Research, scientists have successfully transitioned fundamental research in
autonomy to undersea gliders, demonstrating in sea tests in the Pacific how the new
software can help robots become smarter at surveying large swaths of ocean. "Using the
new algorithms, the vehicle has a greater ability to make its own decisions without requiring
a human in the loop," said Marc Steinberg, program officer for ONR's Adaptive Networks for
Threat and Intrusion Detection or Termination (ANTIDOTE). With plans to deploy squadrons
of air, surface and undersea robotic vehicles later this decade, the Navy is investing in basic
research programs to improve autonomous system capabilities. (Source: NNS, 12/02/11)
Gulf Coast note: The Naval Oceanographic Office at NASA’s Stennis Space Center, Miss.,
operates a fleet of underwater vehicles; the ONR’s Naval Research Lab has a detachment
at SSC.

Funding sought for test facility
PASCAGOULA, Miss. – Jackson County Supervisors agreed to make a proposal to the
Mississippi Development Authority for up to $20 million for a test facility at Ingalls
Shipbuilding. If the state likes the proposal, it will then invite a full-funding application. The
multimillion-dollar facility would be built on the west bank of the shipyard and would be used
for pre-installation assembly, integration and testing of ship components and equipment.
(Source: Mississippi Press, 11/06/11)

Training facility moves forward
Work on a multimillion-dollar maritime training facility could begin in January. The Board of
Supervisors and Port Authority’s Board of Commissioners are expected to pass a joint
resolution Monday to award a $15.6 million construction contract to Mobile, Ala.-based Ben
M. Radcliff Contractor Inc. The 76,000-square-foot facility on Ingalls property will take 18
months to build. 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. (Source: Mississippi Press, 12/04/11)

Contract: Huntington Ingalls, $46M
Huntington Ingalls Inc., Pascagoula, Miss., is being awarded a $46,079,303 contract
modification to previously awarded contract to procure long lead time material and related
support for DDG 1002 products construction. Work will be performed in Pascagoula, Miss.
(28 percent); Benicia, Calif. (24 percent); Burns Harbor, Ind. (10 percent); Corona, Calif. (9
percent); Monroe, Conn. (4 percent); Deerpark, Texas (3 percent); Patterson, N.J. (3
percent); and other various locations with less than 1 percent of the total (19 percent). Work
is expected to complete by March 2012. The Naval Sea Systems Command, Washington, D.
C., is the contracting activity. (Source: DoD, 12/02/11)

Ingalls to cut 500 positions
PASCAGOULA, Miss. - Ingalls Shipbuilding plans to reduce its workforce by 500 people, the
company said. Ingalls announced a "a voluntary reduction-in-force offer" will be made to all
non-union Ingalls Shipbuilding employees in Pascagoula. Jobs would include engineers or
those who work in the human resources or finance department, among others. The
company blamed it on cost pressures in anticipation of declining shipbuilding budgets.
(Source: Sun Herald, 12/02/11)

Sub to be christened Saturday
The attack submarine USS Mississippi will be christened Saturday in a ceremony at General
Dynamics Electric Boat in Groton, Conn., the Navy said. Secretary of the Navy Ray Mabus
will deliver the principal address. The ship, the fifth to be named after the state, is scheduled
to be commissioned in Gulfport, Miss., June 2, 2012. (Source: Sun Herald, 12/02/11)

Contract extension OKd
PASCAGOULA, Miss. - Union workers at Ingalls shipyard Thursday voted to extend their
current labor contract for three years. Workers will get a $1,000 bonus before Christmas
and three raises over the next three years. They also will have to shoulder higher health
care costs, which will be increased by increments, over the next three years. The contract
applies to the Pascagoula and Gulfport yards as well as Avondale, La. (Source: Sun Herald,
12/01/11)


NOVEMBER 2011

Pollution response training done
PENSACOLA, Fla. - The U.S. Coast Guard on Wednesday conducted pollution response
training for the deployment of the Spilled Oil Recovery System in Pensacola Bay. Members
from the Eighth Coast Guard District Response Advisory Team, Coast Guard Gulf Strike
Team and Coast Guard Sector Mobile, Ala., deployed aboard the USCG Cutter Cypress, a
225-foot seagoing buoy tender homeported in Mobile. The exercise is to test and improve
the Coast Guard's ability to assemble and deploy the Cypress' SORS to recover surface oil
from the water after a spill or release. Following the 1989 Exxon Valdez oil Spill, all Coast
Guard sea-going buoy tenders have to be equipped with oil skimming systems. The Cypress
has a crew of 50. (Source: U.S. Coast Guard, 11/30/11)

Union members vote Thursday
PASCAGOULA, Miss. - Union workers at Ingalls Shipbuilding vote Thursday on a company
offer to extend the current contract. Ingalls is offering three raises and a one-time $1,000
bonus next month if workers will vote to extend their work contract for three years. Health
care premiums will go up by increments each year and the bonus, which will be subject to
taxes and deductions, will replace a cost-of-living adjustment due next year. If the workers
turn down the offer, the unions would go into a full contract negotiation in March. (Source:
Sun Herald, 11/29/11)

Coast Guard cutter launched
The Coast Guard announced the launch of its third Sentinel-class Flast Response Cutter,
the William Flores, at Bollinger Shipyards, Lockport, La. The launch of the 154-foot cutter
into the waters of Bayou Lafourche marks a production milestone as the Fast Response
Cutter readies for sea trials, delivery, crew training and eventual commissioning. The William
Flores is scheduled to be delivered and commissioned in 2012. The cutter will be
homeported in Miami, with a crew of 24 to conduct alien migrant interdiction operations, port,
waterways and coastal security patrols, search and rescue and national defense missions.
(Source: U.S. Coast Guard, 11/29/11)

Work boat show set to begin
NEW ORLEANS – The International WorkBoat Show, dubbed the largest maritime trade
show in North America, gets under way Wednesday at the Ernest N. Morial Convention
Center. The event is expected to draw 13,000 visitors from around the world. Organizers
expected upwards of 1,000 exhibitors to cover more than 200,000 square feet, showing their
products and meeting with customers and other vendors. On Tuesday there’s a separate
one-day summit that includes a roundtable and networking opportunities. (Source: New
Orleans Times Picayune, 11/27/11)

Contract: Lockheed, $11.7M
Lockheed Martin Corp., Baltimore, Md., is being awarded an $11,683,081 modification to
previously awarded contract for MK 41 Vertical Launching System ordnance alteration kits,
production support material, interim support parts, and equipment in support of DDG 51
class new construction, Aegis modernization programs, and Aegis ashore programs. The MK
41 VLS provides a missile launching system for CG 47 and DDG 51 class surface
combatants of the Navy, surface combatants of allied navies, and Aegis ashore
requirements for Missile Defense Agency's Ground Ballistic Missile Defense Program. The
MK 41 VLS 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 Baltimore,
Md. (41.1 percent); Lewisburg, Tenn. (19.1 percent); Ft Walton Beach, Fla. (18.8 percent);
Johnstown, Pa. (9.2 percent); Simpsonville, S.C. (5.5 percent); Clearwater, Fla. (3.2
percent); and Sterling Heights, Mich. (3.1 percent), and is expected to be completed by
September 2014. The Naval Sea Systems Command, Washington, D.C., is the contracting
activity. (Source: DoD, 11/23/11)

Contract: HII, $51.3M
Huntington Ingalls Inc., Pascagoula, Miss., is being awarded a $51,342,168 modification to
previously awarded contract for life cycle engineering and support services for Landing
Platform Dock 17 class integrated shipboard electronic systems. Work will be performed in
Pascagoula, Miss., and is expected to be completed by December 2012. The Naval Sea
Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 11/22/11)

CID establishes commands
PENSACOLA, Fla. - The Center for Information Dominance stood up two new commands
Nov. 14. The request for the new commands, the Center for Information Dominance Unit
(CIDU) Corry Station and CIDU Monterey, was approved by Navy Secretary Ray Mabus Oct.
31. The new commands are in response to the "expanded size of the detachment and
assigned cyber training mission." Annually, CID Unit Corry Station, Pensacola, Fla., trains
about 9,000 Navy and Joint Cryptologists, Information Systems Technicians and Information
Warfare and Information Professional officers, while CID Unit Monterey, Calif., trains about
1,200 Cryptologic Technicians and Foreign Language Officers. In remarks during the stand-
up ceremony at Corry Station, CID Commanding Officer Capt. Susan K. Cerovsky compared
the shore-based commands to that of a newly-commissioned ship. With a staff of nearly
1,300 military, civilian and contracted staff members, CID Corry Station oversees the
development and administration of more than 168 courses at four commands, two
detachments and 16 learning sites throughout the United States and in Japan. CID Corry
Station provides training for about 24,000 members of the U.S. Armed Services and allied
forces each year. (Source: NNS, 11/21/11)

Navy eyes superferries
NORFOLK, Va. - The Navy is working with the U.S. Maritime Administration to permit the
transfer of two high-speed superferries into naval service, according to a Navy
spokeswoman. The Maritime Administration took over the two Hawaiian superferries, Alakai
and Huakai, both built by Austal USA in Mobile, Ala., in July 2009 after a bankruptcy judge
ruled that the owner could abandon them to lenders. The administration, which guaranteed
the loans, moved them to Norfolk and eventually bought the vessels. Huakai was used in the
military's relief efforts after the Haiti earthquake in January 2010. The Navy first expressed
interest in the ships when the Maritime Administration took them in 2009. Built to move cars
and people among the Hawaiian Islands, the ferries can cruise at 35 knots and carry 836
passengers and 282 cars. The Maritime Administration said Friday that a deal had yet to be
reached. (Source: Norfolk Virginian-Pilot, 11/21/11)

Navy updates sci-tech priorities
WASHINGTON - The Office of Naval Research has released the latest update to the Naval
Science and Technology Strategic Plan. It reflects future naval requirements, including a
new emphasis on autonomous systems. "Our superiority at sea demands that we maintain
superiority in science, engineering and technology," said Sean J. Stackley, assistant
secretary of the Navy for research, development and acquisition. Key areas of difference
between the 2011 biannual plan and the 2009 version include a new emphasis on
accelerating insertion of mature technologies to the fleet and consolidating 13 “S&T Focus
Areas” into nine, including the new category of Autonomy and Unmanned Systems. It also
places an emphasis on science, technology, engineering and mathematics initiatives aimed
at increasing the talent pool of future naval scientists and engineers. ONR provides the
science and technology necessary to maintain the Navy and Marine Corps' technological
advantage. (Source: NNS, 11/17/11) Gulf Coast note: The region is involved in unmanned
systems and is also home to a Naval Research Lab detachment at Stennis Space Center,
Miss.

LPD 22 finishes acceptance trial
PASCAGOULA, Miss. - Huntington Ingalls Industries announced that the company's sixth
amphibious transport dock, San Diego (LPD 22), successfully completed its Navy
acceptance trial this week. The ship returned to Ingalls Shipbuilding Thursday after a two-
day sea trial. With the Navy’s Board of Inspection and Survey observing, Ingalls' test and
trials team tested the ship's main propulsion, steering, communications suite and deck
missions systems. Many tests, including anchor handling, ballasting/de-ballasting the well
deck and ventilation systems were performed while at sea. Shipbuilders will spend the next
month putting the final touches on LPD 22 before the amphibious transport dock ship
delivers in mid-December. (Source: Huntington Ingalls via GlobeNewswire, 11/18/11)

Shipyard workers get detail
PASCAGOULA, Miss. - Workers at Ingalls Shipbuilding this morning received flyers outlining
the terms of a proposed 3-year contract extension between all unions at the Pascagoula
facility and the shipyard. The extension would take the contract to March 8, 2015 and
includes three wage increases and a $1,000 bonus in lieu of cost of living adjustments.
Union members will vote Dec. 1. (Source: Sun Herald, 11/18/11)

Signal to repair rig
MOBILE, Ala. – Signal International will repair an oil rig damaged off the coast of west Africa,
the company announced Thursday. Signal sent a crew to Port Gentil in Gabon to help
transport the Hercules 185 jack-up rig across the Atlantic Ocean and Gulf of Mexico to the
company's Pascagoula, Miss., repair yard. It’s expected to arrive Nov. 29. Signal will hire up
to 300 workers over the next month or two to complete the job and others. (Source: Mobile
Press-Register, 11/17/11)

Two shipbuilders land contracts
VT Halter Marine of Pascagoula, Miss., and Eastern Shipbuilding Group of Panama City,
Fla., each were chosen to build eight offshore supply vessels for Covington, La.-based
Hornbeck Offshore Services, according to the company. The Mississippi Press reports that
Hornbeck's contracts with the two companies for 16 vessels is valued at some $720 million.
(Source: Mississippi Press, 11/17/11)

Ingalls to offer contract extension
PASCAGOULA, Miss. - Ingalls Shipbuilding confirmed to the Sun Herald Thursday night that
it’s going to offer workers a three-year extension to their current work contract. The details
of the proposal have been negotiated between the company and union leaders and will be
explained in a flier to be handed out Friday morning, beginning with the first shift at 6 a.m.
Workers who are members of a union will have an opportunity to vote on this issue Dec. 1.
(Source: Sun Herald, 11/17/11)

Keel laid for first DDG 1000
BATH, Maine - The Navy laid the keel Thursday for its first Zumwalt-class destroyer, DDG
1000, at General Dynamics-Bath Iron Works shipyard in Bath, Maine. Keel laying was once
traditionally the formal recognition of the start of the ship's construction, but today's modular
shipbuilding allows fabrication of the ship to begin months before. The keel laying remains
the ceremonial beginning of the ship. Construction of DDG 1000 began in February 2009. It’
s currently more than 60 percent complete and scheduled for delivery in fiscal year 2014.
Construction on the second ship began in March 2010. (Source: NNS, 11/17/11) Gulf Coast
note: Ingalls’ Composites Center of Excellence in Gulfport, Miss., is building the DDG’s
deckhouses, helicopter hangars and parts of the ships’ peripheral vertical launch systems.

Panetta: F-35, shipbuilding at risk
Two military programs of high interest to the Gulf Coast, shipbuilding and the F-35, could be
at risk with additional defense cuts. In a letter to Sens. John McCain and Lindsey Graham,
Defense Secretary Leon Panetta said reductions beyond the $450 billion, 10-year defense
budget cuts already planned would reduce the size of the military sharply. If a special
committee of lawmakers fails to reach agreement by Nov. 23 on deficit reduction, that would
trigger a so-called sequestration that would involve at least another $500 billion in defense
cuts over a decade and cut military programs in 2013 by 23 percent. In addition to the F-35,
other programs that face termination include shipbuilding, space initiatives, silo-based
nuclear missiles and ground combat vehicle modernization. (Source: Bloomberg via
Business Week, 11/14/11) Gulf Coast note: The F-35 training center is at Eglin Air Force
Base, Fla.; Gulfport and Pascagoula, Miss., and Mobile, Ala., build ships for the military.

Two yards team for repair work
MOBILE, Ala. – Two Mobile shipyards will team up to repair a Navy research vessel over the
next few months. BAE Systems Southeast Shipyards won a contract to repair the Sea
Fighter, an experimental littoral combat ship, at its Pinto Island shipyard across from
downtown Mobile. BAE hired its neighboring shipyard, Austal USA, as a subcontractor to
provide structural maintenance work on the aluminum vessel. Austal’s part of the work is
worth $1.5 million. Austal has 2,400 workers and BAE 800 in Mobile. (Source: Mobile Press
Register, 11/11/11)

Failure costs shipyards money
PASCAGOULA, Miss. - Failure to meet Navy standards for best management practices is
costing Ingalls Shipyard some money, temporarily. The Navy confirmed to the Sun Herald on
Thursday that it will withhold a portion of each payment it issues on the $698 million contract
for the Aegis destroyer DDG-114. The contract was awarded in September to Huntington
Ingalls Industries. The amount withheld is 5 percent of each progress payment until Ingalls
makes improvements. The Navy’s decision to withhold money was not announced, but was
reported in the trade publication InsidethePentagon.com. Maine’s Bath Iron Works also was
found to be deficient in more than half of these rules. (Source: Sun Herald, 11/10/11)

Work begins on second JHSV
MOBILE, Ala. – Assembly has begun at Austal USA on the second Joint High-Speed Vessel
for the Navy. Capt. Henry Stevens, director of the Navy JHSV program, welded his initials
Tuesday onto an aluminum plate destined for the ship's frame. The ship will eventually be
named the USNS Choctaw County, representing rural America. Tuesday’s ceremony is
Austal’s version of the traditional laying of the keel, long marking the start of construction.
But Austal, rather than building vessels from the hull up, builds dozens of modules that are
welded together. (Source: Mobile Press-Register, 11/09/11)

Singapore Technologies 3Q profit up
MOBILE, Ala. – Singapore Technologies Engineering Inc., which employs more than 3,000 in
South Alabama and Mississippi through its aerospace and marine subsidiaries, boosted
third quarter profit this year despite a decline in sales. ST Engineering owns ST Aerospace
Mobile at Brookley Aeroplex and VT Halter Marine shipyards in Mississippi’s Pascagoula,
Moss Point and Escatawpa. ST Engineering earned profit of $105 million in the three months
that ended Sept. 30, up from a year ago. That came despite overall revenue falling 6
percent in the quarter. (Source: Mobile Press Register, 11/04/11)

Sub commissioning set for June 2
The $2 billion USS Mississippi submarine will be commissioned June 2 in Gulfport, Miss. In
August Gulfport Mayor George Schloegel announced at a meeting of local businessmen that
the sub would be commissioned in Gulfport, but at the time, the exact date was unknown.
The Mississippi is a Virginia-class sub built by General Dynamics Electric Boat in Groton,
Conn., and Newport News Shipbuilding in Virginia, a part of Huntington Ingalls. The sub is
377 feet long. (Source: Sun Herald, 11/03/11) Note; Seemann Composites of Gulfport
provides composite parts for the Virginia-class sub. (For background story on Seemann's
Virginia-class sub work, see “When the Big Boys Depend on Little Guy,” October 2010 issue
of Alliance Insight)

Students take a look at Ingalls
PASCAGOULA, Miss. – Ingalls Shipbuilding opened its doors to more than 900 students
from Jackson and Harrison counties Friday to show them careers they might want to
consider. The opportunities range from welders and electricians to attorneys and
firefighters. There are 94 departments and more than 1,000 different job titles at Ingalls.
Students heard directly from the Ingalls employees at a series of booths. (Source: WLOX-
TV, 11/04/11)


OCTOBER 2011

Contract: Huntington Ingalls, $13M
Huntington Ingalls Inc., Pascagoula, Miss., is being awarded a $13,000,000 cost-plus-fixed-
fee modification to previously awarded contract to exercise an option for fiscal 2012 class
services in support of class product fabrication, delivery, engineering, and engineering
support of the Zumwalt-class destroyer. Work will be performed in Pascagoula, Miss. (95
percent), and Gulfport, Miss. (5 percent), and is expected to be completed by April 2012.
The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity.
(Source: DoD, 10/31/11)

Big ship now in the water
MOBILE, Ala. - The biggest ship ever built in Alabama is in the water. BAE Systems
Southeast Shipyard launched American Phoenix, a 616-foot-long chemical tanker, into
Mobile River from the company's Pinto Island facility. Work is continuing on the tanker, which
should be delivered to Mid-Ocean Tanker Co. of Connecticut in 2012. (Source: Mobile
Press-Register, 10/28/11)

Navy chief, Wicker visit Ingalls
PASCAGOULA, Miss. – Chief of Navy Operations Adm. Jonathan Greenert and Sen. Roger
Wicker, R-Miss., toured Ingalls Shipbuilding and the amphibious transport dock San Diego
Tuesday afternoon. The ship successfully completed builder's sea trials earlier this month,
and shipbuilders are preparing for Navy acceptance trials next month. Greenert said the
ship still has that “new car smell,” and added that the Navy is eager to take possession.
Wicker noted it’s not Greenert’s first visit to the shipyard, but it is as the top officer in the
Navy. (Source: Mississippi Press, 10/26/11)

Halter launches first of Egyptian ships
PASCAGOULA, Miss. - VT Halter Marine launched the first of four Egyptian navy fast missile
craft Thursday. The four-vessel contract represents an $807 million deal for the local
Pascagoula shipyard. Halter Marine CEO Bill Skinner said the first vessel is on track for a
fourth-quarter delivery next year. The fast missile craft is designed to perform coastal patrol,
surveillance, interdiction, surface strike and naval battle group support. The Egyptian navy
will use the vessels to patrol its coastal waterways of the Red Sea, Mediterranean Sea and
the Suez Canal, according to the U.S. Navy. (Source: Mississippi Press, 10/21/11)

Teachers to hear about Mission Ocean
The curriculum for the Navy-sponsored academic outreach, "Mission Ocean," will be
presented at the 2011 Mississippi Science Teacher's Association Conference at the Marriott
Hotel in Jackson, Oct. 23-25. The curriculum is being offered in association with the
December 2011 christening of the nuclear-powered attack submarine USS Mississippi (SSN-
782), which is scheduled for commissioning in Gulfport, Miss., in 2012. The submarine-
related science curriculum, approved by the Mississippi Department of Education for 6th and
7th grades, that will be available beginning with the 2012-2013 school year. Developed by a
team at Purdue University, the year-long curriculum focuses on science activities and
missions in a simulated submarine control room. Participation in the Mission Ocean program,
developed in 1997, has produced statistically significant improvement in standardized test
scores in the content areas of science, mathematics and social studies. (Source: Tcp,
10/20/11) Gulf Coast note: The ship is being built by Electric Boat in Groton, Conn. Gulfport-
based Seemann Composites provided multiple composite parts for the submarine.

Tugs christened, will service LNG terminal
GULFPORT, Miss. - The Signet Constellation and the Signet Stars & Stripes were
christened at Gulfport-based Trinity Offshore Tuesday morning. Signet will use the RAstar
3100-class tugs to execute a 20-year marine transportation contract from Angola LNG
Supply Services, which supplies liquefied natural gas to Gulf LNG Energy's $1.1 billion
liquefied natural gas terminal in Pascagoula. The terminal, in full production this fall, is
capable of pumping more than 1.1 billion cubic feet of natural gas a day. Signet purchased
long-time Jackson County company Colle Towing last summer, now a division of Signet
called Colle Maritime. (Source: Mississippi Press, 10/12/11)

Signal to upgrade oil rig
MOBILE, Ala. - Signal International Inc. says it’s won a contract to repair and upgrade the
Henry Goodrich, a semisubmersible oil rig owned by Transocean. Work will begin at Signal's
east yard in Pascagoula and will last a little more than two months. The Pascagoula yard
expects to employ an extra 300 people during peak production, said Chief Executive Officer
Dick Marler. Employment at the Pascagoula yard has fallen from a summertime level of
about 700 to about 300, Marler said, so the Transocean deal should help bring that figure
back up. (Source: Mobile Press-Register, 10/13/11)

Fabrication of third JHSV celebrated
MOBILE, Ala. – Austal USA celebrated the beginning of fabrication for its third Joint High
Speed Vessel by presenting an aluminum plaque to U.S. Rep. Jo Bonner. The company now
has three JHSVs under construction. The vessels are 338 feet long and can carry up to 600
tons of cargo and will be used to move troops, weapons and cargo. Austal expects to build
up to 10 JHSVs for the Navy. Fabrication on the third JHSV actually began Sept. 14, but
Friday was the first chance the company had to celebrate the occasion. Fabrication is the
point when workers start putting together plates of metal to create the modules that will
eventually make up the ship. (Source: Mobile Press-Register, 10/07/11)

Cutter leaves Pascagoula
PASCAGOULA, Miss. – The Coast Guard National Security Cutter Stratton (NSC 3) left
Pascagoula Friday and will eventually wind up in California, where it will be home ported.
The ship, built by Ingalls Shipbuilding, is 418 feet long, can reach a top speed of 28 knots
and carries a crew of 110. The ship is named for Capt. Dorothy Stratton, who led the Coast
Guard women's reserve during World War II. The $551 million Stratton is the third of eight
planned Legend-class ships in the Coast Guard's new line of advanced cutters. Ingalls
began work on a fourth cutter, Hamilton, in August. Last month Ingalls secured a $482.8
million contract to build a fifth national security cutter, Joshua James. (Sources: Sun Herald,
Mississippi Press, WLOX-TV)

New JHSV named
The Navy’s next Joint High Speed Vessel (JHSV) will be USNS Choctaw County. Secretary of
the Navy Ray Mabus joined Ackerman, Miss., Mayor Dick Cain to make the announcement
at a brief ceremony at Ackerman High School, Ackerman, Miss. Mabus, who said he grew up
in Choctaw County, to honor the men and women of rural America. The JHSV, capable of
transporting 600 short tons, has an aviation flight deck and can berth up to 146 personnel.
The ship will be built by Austal USA in Mobile, Ala. (Source: Navy, 10/06/11)

Sea trials of newest LPD successful
The Navy’s newest amphibious transport dock successfully completed builder’s trials for
Huntington Ingalls Industries on Saturday, performing a series of tests to get the ship ready
for delivery. San Diego (LPD 22) completed a full power run, a self defense detect-to-
engage exercise, evaluation of key combat and communications systems, rapid
ballast/deballast, quick reversals ahead and astern, steering checks, and an anchor
handling demonstration. San Diego is the sixth ship of the LPD 17 San Antonio class of
amphibious ships designed to carry Marines, landing craft, vehicles and aircraft. It was built
by Ingalls in Pascagoula, Miss., which also builds amphibious assault ships, destroyers and
large Coast Guard cutters. (Source: Navy Times, 10/03/11)


SEPTEMBER 2011

Study: Shipyard closure will impact home prices
NEW ORLEANS - Realtors expect home values to fall by more than 20 percent on the west
bank with the closing of the Avondale Shipyard, and most believe home prices across the
metropolitan area will also be affected. That’s according to a study released Monday by the
Avondale Shipyard Research Project, which involves four universities. The consortium didn't
plan on investigating home values as its first project, but in their initial interviews at the
Avondale Shipyard, workers immediately started expressing concerns about housing. The
consortium includes the University of New Orleans, Loyola University, Tulane University and
Southern University of New Orleans. Last year, Northrop Grumman said it would close the
shipyard in 2013, impacting 5,000 workers. 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)

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. The Naval Sea Systems Command, Washington, D.C., is the
contracting activity. 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)

Bids sought for maritime academy
PASCAGOULA, Miss. - Jackson County leaders are 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 federally funded 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: Mississippi Press,
09/20/11)

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)

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)

Ingalls gets cutter contract
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 is
slated to be delivered to the Navy early next year. The ship 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 and will conduct
shipboard mission module testing over the next several weeks. LCS 2 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)

USS New York to be in NYC during 9/11 events
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, whose bow as
made with steel recovered from the World Trade Center, was built by Northrop Grumman
shipyard in Avondale, La. Scheduled to close, the yard is now part of Huntington Ingalls
Industries.


AUGUST 2011

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 shipbuilding
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 U.S. Coast Guard on Friday.
(Source: Huntington Ingalls via GlobeNewswire, 08/30/11)

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 results of 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)

UNO gets money for welding tool
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)

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)

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, hampering their rights to vote freely. Austal USA President Joe Rella
said company representatives acted in a lawful and professional manner throughout the
election process, which saw workers vote 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)

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 U.S. 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)

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)

Stratton returns from sea trials
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)

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)

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)

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.

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. Mayor George Schloegel
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, 08/03/11) Note: Seemann
Composites of Gulfport provided key composite parts for the nuclear-powered Virginia-class
sub.


JULY 2011

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)

BAE brings 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)

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)

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, 07/13/11)

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)

Mobile ship makes movie debut
MOBILE, Ala. - The Austal USA-built USS Independence is one of the characters in the
cartoon 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
Cars 2, the unnamed ship character has just a few scenes. Early on it’s 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)

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)


JUNE 2011

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)

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)

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)

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)

Corrosion problem found on 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)

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)

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

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, 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, unsuccessful
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)

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)


MAY 2011

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. (Source: Mobile Press-
Register, 05/28/11)

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)

Avondale to be subject of study
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. (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
that it can build even more complex vessels. (Source: Mobile Press-Register, 05/22/11)

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, Mississippi Press, 05/20/11)

Ingalls to research welding improvements
Huntington Ingalls Industries’ Pascagoula 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)

Army transfers JHSVs to Navy
The Army has transferred to the Navy all five of its Joint High Speed Vessels (JHSV). The
Memorandum of Agreement (MOA) was signed May 2. The agreement 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 were built by Austal USA in Mobile, Ala.


APRIL 2011

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)

Huntington Ingalls name 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)

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 that 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.

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)

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)

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)


MARCH 2011

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)

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)

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)

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)

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)

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, if
exercised, would bring the cumulative value of this contract modification 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)

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)

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, Ala., 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)

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)

Northrop board OKs spinoff
Northrop Grumman’s board of directors 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 begin trading under the symbol "HII" the next day.  
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)

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.


FEBRUARY 2011

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)

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)

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. It will allow the company to 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)

Keel laid for new survey ship
MOSS POINT, Miss. – VT Halter Marine laid the keep Tuesday of a multimillion-dollar Navy
research vessel named after Matthew Fontaine Maury, considered 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)


JANUARY 2011

A close look at a sea trial
A Navy Times staff writer provides a detailed look at the recent, highly successful super trial
of the Northrop Grumman-built destroyer William P. Lawrence, DDG 110. 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)

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)

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)

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 sixth 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 in operation with the U.S. Coast Guard. Textron
Marine & Land Systems delivered the first five MLBs in seven months, during which time
crew training was also completed. Textron Marine & Land Systems is an operating unit of
Textron Systems, a Textron Inc. company. (Source: Business Wire, 01/24/11)

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)

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.

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)

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)

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)

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.

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)

Austal awards contract to GD
Austal USA 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 as many as 10 littoral combat ships for the Navy.

Week in review column
Aerospace is the focus on 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)
Gulf Coast shipbuilding