Austal USA wins $312 million contract for JHSV from US Defense

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. Contract funds will not expire at the end of the current fiscal year. The U.S. Navy has exercised contract options funding the construction of the sixth and seventh Joint High Speed Vessel (JHSV), as part of a ten-vessel program potentially worth over US$1.6 billion. The construction contract for both vessels is valued at approximately US$313 million. Austal Chief Executive Officer, Andrew Bellamy, noted that this contract demonstrates the U.S. Navy’s confidence in Austal as a leading defence prime contractor. “With options remaining for a further three vessels, the JHSV program is expected to deliver a predictable revenue stream of AUD$330 million per annum from 2012 to 2015, which is approximately 60 per cent of Austal’s historical revenue.”