News Story: Aussie warship project to be delayed for two years by local companies - minister

BAE Systems Type 26 Global Combat Ship for SEA 5000

CANBERRA, Sept. 8 (Xinhua) -- A 28-billion-U.S.-dollar Australian warship project could be delayed for two years if local companies are handed the contract, a government minister has warned.

The Future Frigates project will see nine new anti-submarine warfare frigates designed and built to replace Australia's existing Anzac frigate fleet.

The Australian bid to build the ships is being led by South Australia's ASC and Western Australia's Austal but Spain's Navantina, Britain's BAE Systems and Italy's Fincantieri have also been shortlisted for the project.

Despite an initial promise that the ships would be built in Australia, the Defence Department has convinced the government that the Australian-built clause should be "optional" rather than "mandated."

Christopher Pyne, Australia's defence industry minister, said: "Advice from the Department of Defence is that changing the request for tender to mandate a particular shipbuilder would result in a delay of at least two years in the Future Frigates program."

Read the full story at Xinhua

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PacificSentinel: I think people need to remember three things, first of all the project was moved forward by two or three years in the first place, so a two year delay would put it back on the original time table, the second thing is the reason it was moved forward in the first place, which was to build a local shipbuilding industry, so sending the construction overseas defeats the original purpose anyway, the third thing is that the ANZAC class Frigates have just finished an upgrade that should see them more than capable of lasting for an additional 2 years.

News Story: Australian Naval Shipbuilders Team Up

Australia's naval shipbuilders Austal and ASC Shipbuilding have agreed to act together to compete for the construction of Australia's Future Frigates program in partnership with the overseas designer yet to be chosen by the government.

“The Austal/ASC Shipbuilding teaming arrangement offers a compelling, low risk, Australian shipbuilding solution for each of the three shortlisted international designers; BAE, Fincantieri and Navantia,” Austal CEO, David Singleton said.

“This partnership will bring Austal’s unparalleled record in aluminium shipbuilding, exports and operational efficiency to combine with ASC Shipbuilding’s expertise in steel warship manufacturing,” he said.

Austal has sold more than 255 ships to 100 customers in 44 countries, including the U.S.

Read the full story at MarEx

News Story: OMB ‘Supports’ Extra LCS, But Where’s The Money?

By SYDNEY J. FREEDBERG JR.

UPDATE: Source Says WH Will Fund LCS Add; CRS Naval Expert Comments 

CAPITOL HILL: In a startling turnabout, the Trump Administration now “supports” adding a $541 million Littoral Combat Ship to yesterday’s 2018 budget request, Navy officials told Congress this afternoon. What, exactly, does that mean? The Navy doesn’t know.

Minutes before Navy witnesses were to testify before the House seapower subcommittee, they were given new language from the White House Office of Management & Budget: “The Administration recognizes the criticality of our industrial base and supports funding a second LCS in FY18.” OMB gave them no information, however, about whether “supports” is a promise of new money or just a vague sentiment that Congress should feel free to increase the Navy budget.

UPDATE BEGINS: The money will come, promised a source familiar with the administration’s discussions. “The administration’s going to support two (Littoral Combat) ships in the budget in FY18, and we’re figuring out the mechanism to do that,” the source assured me. “There will be a document of some sort, some sort of statement indicating that the administration is going to include in its budget request two LCS in ’18.” The administration will also probably urge the Hill to add a third LCS, leaving it up to Congress to find the funding for that ship.

Where’s the money coming from for the second LCS, the one the administration isfunding? “That is a question for which I do not have an answer,” the source admitted. “OMB and DoD are going to have to sort that out. All I can say is, it will be there.”

Land of Confusion

This was a pretty confusing way to get something in the budget, I said.

“Yeah. I don’t disagree,” said the source, chagrinned. “I wish that it had been done differently the whole way, (but) LCS is a controversial ship, and there are plenty of people who have concerns about it. (At DoD), I think they viewed LCS as a bill payer for other priorities.”

Ultimately, “the senior people in the administration said, we’re going to make the industrial base for our navy…a priority,” the source said, but by that point, “it was too late to put it in the physical budget document that were printed…The decision to include came rather late in the process and communicating that to the Navy and DoD writ large was a little delayed.” UPDATE ENDS

Read the full story at Breaking Defense

News Story: SASC Will ‘Help’ Trump On Navy’s 355-Ship Fleet - Sen. Wicker

Image: Flickr User - Greg Bishop

By SYDNEY J. FREEDBERG JR.

CAPITOL HILL: Presidents propose; Congress disposes. President Trump’s shipbuilding budget for 2018 is a placeholder that legislators can increase, the chairman of the Senate seapower subcommittee told me this morning.

After Sen. Roger Wicker chaired a hearing with shipbuilding executives, following a classified hearing with Navy leaders, I asked him about Trump’s budget. Despite Trump’s campaign pledge for a 350-ship fleet, his budget adds no ships to the Obama plan for FY18 and actually cuts the shipbuilding account. Is this a disappointment, a placeholder, or — given that it takes time for the shipyards to ramp up — a reasonable delay?

“Option B,” Wicker told me with a slight smile. “It’s a placeholder.

“We’re going to work with the administration,” Wicker said. “We’re going to try to help the president get to his goal of more than 350 ships.”

“We take the leadership of the Navy’s recommendations seriously, as a matter of national security,” Wicker continued. The Chief of Naval Operations, Adm. John Richardson, released a new Force Structure Assessment last fall calling for a 355-ship fleet.

“The president has endorsed that concept in broad terms,” Wicker said, “and we aim to work with him to make the budget” — a thoughtful pause — “consistent.”

In other (less politic) words, if Trump won’t put his money where his mouth is, Congress can do it for him.

“I’m going to take it one year at a time,” Wicker told me. “I think what we heard today is an eminently doable lift for this year, this next fiscal year (2018).”

So what did Wicker hear?

Read the full story at Breaking Defense

News Story: Trump Budget Reduces Funds for Naval Shipbuilding

Image: Flickr User - Greg Bishop

On Tuesday, the Trump administration released its proposed budget for FY2018, including $639 billion in defense spending. The Navy would receive $171.5 billion of this amount, $6.5 billion more than in 2017. 

As expected, the budget would fully fund all planned ship depot maintenance, long under-resourced due to sequestration. This would would help clear a severe backlog of deferred maintenance on the attack submarine fleet, and would give the Navy ten more vessel maintenance availabilities than in the prior year. It also funds the continuation of a controversial refit for the Navy's aging Ticonderoga-class guided missile cruisers, the so-called "2/4/6" plan. In addition, the budget would fund aviation maintenance depots to their maximum current capacity. In a statement, the Navy said that these investments reflect the "importance of restoring wholeness in order to build capacity and improve lethality in the future."

Navy leaders have warned for years that underinvestment in maintenance is reducing readiness. In January, vice chief of naval operations Adm. Bill Moran cautioned that extended deployments and cost-cutting were a risky combination. “This long war we’re in and emerging or re-emerging threats have raised the stakes and kept us on the field longer than our bullpen is able to stay healthy . . . Deferred maintenance is insidiously taking its toll on the long-term readiness of our fleet.” 

However, the proposed budget would not provide as much for naval shipbuilding as some had hoped. A shipbuilding procurement budget of $20 billion would go towards one Ford-class carrier, two Arleigh Burke-class destroyers, two Virginia-class subs and only one Littoral Combat Ship (LCS). This list mirrors the Obama administration's plan, and it reduces funding for shipbuilding by about $1 billion compared with the enacted budget for FY2017.

Read the full story at MarEx

Industry: Austal supports the (Australian) government's Naval shipbuilding plan for a national endeavour

Austal (ASX:ASB) welcomes the release of the Government’s Naval Shipbuilding Plan.

The plan builds on the Government’s commitment from the 2016 Defence White Paper to local shipbuilding and outlines the plan to deliver an Australian sovereign shipbuilding and sustainment industry.

This plan identifies enormous sustainment opportunities for the Henderson Precinct in Western Australia in line with the projects announced for the Osborne Hub, both of which will provide long term jobs and sustainable export opportunities 

“The Government’s plan to deliver a national shipbuilding industry perfectly complements Austal’s ambitions to make Australia a design and construction center for the sector,” Austal Chief Executive Officer, David Singleton said “We are already a major partner for the Government in the naval shipbuilding endeavor, having delivered all Offshore Patrol Vessels for Border Force and Navy since 1998,” Mr. Singleton said.

News Story: Australia prime minister - Shipbuilding plan is 'an end to the boom and bust pattern'

A Hobart class (AWD) Destroyer under-construction at the

Osborne Naval Shipyard (ASC) 

By: Nigel Pittaway

MELBOURNE, Australia – Prime Minister Malcolm Turnbull launched Australia's long-awaited naval shipbuilding plan on May 16, including the construction of submarines, frigates and offshore patrol vessels, costing A$89 billion (US $66.12 billion), in Australian shipyards. 

Turnbull launched the shipbuilding program with Defence Minister Marise Payne and Minister for Defence Industry Christopher Pyne at Osborne in South Australia, where the majority of construction work will take place. 

“This is a great national enterprise. This is nation building. This is an end to the boom and bust pattern that we’ve seen with shipbuilding in Australia,” Turnbull said. “This is the largest investment in our defense capability of our Navy ever in peace time.” 

Under the plan, the government will invest in the rolling acquisition of 12 conventionally-powered submarines under Project Sea 1000 (Future Submarine), the continuous build of nine frigates under Project Sea 5000 (Future Frigate) and a follow-on class of surface combats; and a continuous build program for minor naval vessels. 

The minor naval vessels build program is already underway with construction of 19 patrol boats to be gifted to Pacific nations under Project Sea 3036, beginning this year at the Austal facility at Henderson in Western Australia.  This will be followed by the Offshore Patrol Vessel program for the Royal Australian Navy under Sea 1180 from 2018, initially commencing at the Osborne Naval Shipyard and transferring to Henderson in 2020. 

Read the full story at DefenseNews

Industry: Austal to open new shipbuilding design & project management office in Adelaide

Austal (ASX:ASB) is pleased to announce the establishment of a new design and project management office in Adelaide, South Australia, to support the company’s expansion into one of Australia’s two major shipbuilding hubs.

The new office will initially support preparations for the Australian Government’s $3 billion Offshore Patrol Vessel (OPV) project, which will see 12 vessels constructed for the Royal Australian Navy from 2018. It will also enable Austal to prepare for the Government’s Future Frigate project, comprising nine vessels to be constructed in Adelaide from 2020.

Austal has entered into a 50:50 joint venture partnership with German designer Fassmer for the OPV project, offering a customised, low-risk solution based on a proven design platform and build strategy that has successfully delivered seven similar vessels internationally, to date.

The effective, holistic transfer of this new OPV capability to Australian industry will enable local, high quality support for the Royal Australian Navy, build local industry capability and allow Austal - Australia’s largest defence exporter - to pursue new industry-building export opportunities.

News Story: (USA) Key SASC, SAC-D Senators Push More LCS

Austral Independence class LCS

By SYDNEY J. FREEDBERG JR.

WASHINGTON: Eight Senators sent a letter Friday to Defense Secretary James Mattis, urging him to request all three Littoral Combat Ships originally planned for the 2018 budget. While eight percent of the Senate may seem small, the bipartisan co-signers — four Republicans, four Democrats — include five members of the authorizing and appropriating committees for defense. Most notable among them is senior Alabama Senator Richard Shelby, who also chairs the Senate rules committee.

Smaller and more fragile than traditional destroyers, the Littoral Combat Ship has been controversial since its inception, and it frequently takes a shellacking in congressional hearings. But it’s long had strong support in Alabama, where Austral builds the triple-hulled Independence variant, as well as in Wisconsin, where Marinette Marine makes the single-hulled Freedom. Now the program is at a turning point, with the Navy itself acknowledging it needs an upgunned ship and setting up a competition between Austal and Marinette to build what it calls a frigate, essentially a better-armed but less versatile LCS. Congress’s investigative arm, the GAO, argues the program isn’t ready for the transition to frigates, while some prominent outside observers argue the LCS should be cancelled altogether in favor of an all-new ship.

Marinette Marine Freedom class LCS

In this moment of uncertainty, LCS backers want to make sure it preserves its share of the budget. That means three of the small vessels in 2018 — potentially with subsequent contract modifications to make them frigates instead of vanilla LCS.

Read the full story at BreakingDefense

Industry: Austal Cuts Steel On First Pacific Patrol Boat Replacement & Australia's Continuous Naval Shipbuilding Program

Austal (ASX:ASB) today welcomed the Minister for Defence Industries, the Hon. Christopher Pyne MP, to cut the first steel plate for the first of nineteen Pacific Patrol Boat Replacement (PPB-R) vessels for the Commonwealth of Australia.

Austal CEO Mr David Singleton said the plate-cutting was not only the start of construction for the A$306 million Pacific Patrol Boat Replacement project, but also the Australian Government’s A$89 billion Continuous Naval Shipbuilding Program.

“Austal is incredibly proud to be delivering the Commonwealth’s Pacific Patrol Boat Replacement Project.  Austal is Australia’s only design, build and sustainment shipbuilding company.”

News Story: Uncharted waters - US Navy still searching for path to a bigger fleet

Austal LCS

By: Christopher P. Cavas

WASHINGTON — Just about everybody in and around the U.S. Navy agrees there is a pressing need to build a bigger fleet. Just about nobody agrees on a way to get there. 

It’s not yet clear what the overall goal will be — 355 ships, the latest figure put forth by the Navy to grow from today’s 308-ship fleet target — or the Trump administration’s oft-stated 350-ship fleet. No one knows how much the new fleet will cost because there have been no decisions on the new force’s makeup — how many submarines, aircraft carriers, big-deck amphibious ships, destroyers and the like will be needed. 

No decisions have been reached on how or what to change from existing plans that all date from the previous presidential administration. No one is yet sure what those in power want — what their priorities are, what directions they want to take to reach yet-to-be-determined goals, even who the real players are. Some of those presupposed key players have yet to be named or nominated, much less put in office. There are no timelines yet for reaching any of those conclusions. 

No one knows precisely what will be in the next budget because, for one, the Pentagon is still working on the fiscal 2018 budget which won’t be sent to Congress until mid-May, and secondly, Congress, trapped in a seemingly endless inability to pass timely defense budgets, still hasn’t finished work on the 2017 budget or moved on the 2017 supplemental requests. It’s hard to figure what to ask for next year when you don’t know what you’re going to get this year — but that’s what the Defense Department is dealing with.  

The 2018 budget submission in May should also include details of the future years defense program, the near-term plan for what the Navy intends to do in each procurement program. In conjunction with the budget, a new 30-year shipbuilding fleet plan should also be submitted detailing the way ahead through 2038. 

Read the full story at DefenseNews

Industry: Defence Industry Minister Opens Austal's New Pacific Patrol Boat Replacement Shipbuilding Facility

Austal (ASX: ASB) has welcomed Australian Defence Industry Minister The Hon. Christopher Pyne MP to officially open the company’s new Pacific Patrol Boat Replacement (PPB-R) Shipbuilding Facility in Naval Base, Western Australia and herald the commencement of Austal’s steel naval shipbuilding capability.

Minister Pyne cut the red ribbon at the 10,500m² facility in front of key defence industry stakeholders, suppliers and partners from across Australia.

Speaking at the official opening, Austal Chief Executive Officer David Singleton said the PPB-R project is estimated to create up to 207 jobs across production, project management, services and support - from Perth Western Australia to Cairns in Queensland.

“The PPB-R project is the first key element in the Federal Government’s Continuous Naval Shipbuilding Plan and Austal is proud to be leading the way by growing Australia’s shipbuilding capability,” he said.

“It is worthy of note that this facility was originally built to service the mining boom and it has now been transformed to support what I anticipate to be a shipbuilding boom here in WA.”

News Report: McCain Pledges Hearings on Navy Frigate Program, Wants to Consider More Designs

Sen. John McCain (Image: Wiki Commons)

By: Sam LaGrone and Megan Eckstein 

Sen. John McCain (R-Ariz.) plans to hold hearings on the Navy’s frigate program amidst calls to open the competition to more domestic and foreign designs.

McCain – a constant critic of the Littoral Combat Ship, which serves as the basis for the Navy’s frigate plans – told reporters on Tuesday that hearings before the Senate Armed Services seapower subcommittee would seek to reexamine the entire frigate program.

“The frigate acquisition strategy should be revised to increase requirements to include convoy air defense, greater missile capability and longer endurance,” he said at an event outlining the Center for Strategic and Budgetary Assessments’ recent U.S. Navy fleet architecture study, reported Inside the Navy.

“When you look at some of the renewed capabilities, naval capabilities, that both the Russians and the Chinese have, it requires more capable weapon systems.”

A committee staffer confirmed to USNI News on Tuesday the LCS program and the Navy’s plan for a frigate would be major topics of the seapower subcommittee’s hearings in the spring.

News Story: Australia, France sign submarine deal

Australia and France have inked an agreement for a French defense contractor to build 12 cutting-edge submarines. The submarines are part of Australia's new defense strategy in the Asia-Pacific region.

Australia and France on Tuesday signed the final agreement for French naval contractor DCNS to build 12 submarines in what Prime Minister Malcolm Turnbull called a "critically important step in the development of our security."

The 34.9 billion euro ($36.3 billion) deal, including separate agreements with US and Australian contractors, is one of the world's largest defense contracts.

Turnbull described the deal as the "last foundation stone needed to ensure Australia is able to develop a cutting-edge sovereign submarine capability."

Australia's new fleet of submarines is at the center of the country's defense strategy released in February, which allots an extra 20 billion euros over the next decade to secure strategic and trade interests in the Asia-Pacific region.

Read the full story at Deutsche Welle

News Story: LCS Frigate Block Buy Battle - Should Navy Buy Upgraded Ships Wholesale?

Marinette Marine - Freedom class LCS

By SYDNEY J. FREEDBERG JR.

WASHINGTON: Should the Navy buy the next generation of Littoral Combat Ships in bulk? A contentious hearing today before House Armed Services subcommittee on oversight largely framed the options as polar opposites. You can either sign a multi-ship deal to drive down the price, at the risk of getting “locked in” to buying a flawed design. (This is how LCS is currently bought). Or you buy ships one year at a time to preserve congressional freedom to change the program, at the price of paying more per ship. But the quiet voice of Capitol Hill’s leading naval expert, Ron O’Rourke, suggested the year-at-a-time approach could have costly unintended consequences.

In today’s hearing, no one disputed that the Navy’s contention that buying 12 upgraded LCS “frigates” in a single multi-year contract would save money — one estimate was roughly 5 percent — over negotiating with builders one ship at a time. But 12 ships at 5 percent off is still more expensive than buying zero ships.

A lot of LCS critics would rather rid themselves of the small, low-firepower, breakdown-prone vessels altogether. But cancellation is unlikely, because the Navy wants large numbers of the relatively affordable LCS to sweep mines, hunt subs, and patrol the seas, freeing up heavier destroyers for missile defense and other high-intensity missions. So the critics at least want to have the option every year to hold the threat of cancellation over the contractors’ heads to force better performance.

Austal - Independence class LCS

“Maybe LCS should stand for ‘Leaking, Cracked Ship,'” snarked Rep. Jackie Speier both on her Twitter account — using the hashtag #PorkShip — and in person at the hearing. “I and my @HASCDemocrats colleagues want to know why Congress should waste $120 billion on the Edsel of the sea.”

Speier frequently turned her ire on the Navy’s chief shipbuilder, Deputy Assistant Secretary Sean Stackley. “Mr. Stackley, I am so disappointed in your testimony, I can’t begin to tell you,” was the first thing she said to him in the hearing, saying his statement that the contractors properly warrantied their work on LCS “was very deceptive.”

Later in the hearing, Speier accused Stackley of not just deception but disrespect for the law: “My understanding is that, Sec. Stackley, you’ve already put out an RFP that presupposes a block buy, even though you don’t have authorization yet from Congress.”

“What we have put out an RFP for is the 2017 ships (only), with an option for a block buy,” Stackley replied, his frustration clearly simmering throughout the hearing. “We will be coming back to the Congress with the 2018 budget for authorization for the block buy.” That gives enough time to do the design work for the frigate upgrade, he told a skeptical Speier.

Read the full story at Breaking Defense

Industry: Austal Rolls Out First Cape Class Patrol Boat For Royal Australian Navy

Austal (ASX:ASB) is pleased to announce the successful roll out prior to launch of Hull 380, the ninth Cape-class patrol boat designed and constructed by Austal and the first of two to be delivered to the Royal Australian Navy (RAN) in 2017.

Australian Defence Industry Minister, The Hon. Christopher Pyne MP, Senator Chris Back and Federal Member for Canning, Andrew Hastie MP joined Austal Chief Executive Officer David Singleton and Austal Chairman, John Rothwell at the official roll out, completed at Austal’s Henderson Western Australia shipyard.

Mr Singleton said: “It is with great pride we welcome the Defence Industry Minister here today to celebrate not only the continuing success of Cape-class as an effective maritime border protection solution, but Austal’s proven shipbuilding capability.

Think Tank: Continuous shipbuilding - Uncle Sam offers a helping hand

Geoff Slocombe

The US government’s largest contracted military shipbuilder, Huntington Ingalls Industries (HII), recently opened an office in Canberra. It seems unlikely that HII would’ve done that without encouragement from the US government, via the US Navy.

At Newport News in Virginia, HII design, build and refuel all USN nuclear aircraft carriers, as well as building Virginia-class nuclear submarines (along with another US shipyard). At Pascagoula, Mississippi, they are building 35 DDG51 Aegis destroyers, as well as most LPD and LPA amphibious ships for the USN. Not only do they build USN ships but they also sustain them globally.

USA: USS Montgomery arrives in San Diego homeport

From Naval Surface Force, U.S. Pacific Fleet Public Affairs

USS Montgomery (LCS 8) arrives at its new San Diego homeport, Nov. 8. (U.S. Navy/Seaman Trenton Kotlarz) >>

SAN DIEGO - Independence-variant littoral combat ship USS Montgomery (LCS 8) completed its maiden voyage upon arriving at its new homeport of San Diego Nov. 8.

Following construction and acceptance trials at the Austal USA shipyard in Mobile, Alabama, Montgomery set sail in September for Mayport, Florida, conducting equipment checks, system tests, and crew certification training along the way.

"I couldn't be more proud of my crew as they've conquered every obstacle in their way and thrived," said Cmdr. Daniel Straub, Montgomery's commanding officer. "From day one when we departed Mobile, the crew has performed superbly and sailed Montgomery with the expertise, cohesiveness, and precision of an experienced crew. They've proven that they can accomplish anything."

News Story: Global Naval Sales Estimated at $40 Billion

Austal High Speed Support Vessel (HSSV) for the Oman Navy

By: Pierre Tran

PARIS — Euronaval, a naval and maritime defense trade show, is to be held amid buoyant demand in a $40 billion world market, as navies seek to acquire ships and submarines to protect coasts, conduct surveillance over economic zones and project force with a blue water navy, said Patrick Boissier, chairman of Groupement des Industries de Construction et Activités Navales (Gican). 

Gican is a trade association that organizes the military maritime exhibition, which runs Oct. 17-19 at Le Bourget, a business center and airport just outside the French capital. The French Ministry of Defence, with support from the Direction Générale de l’Armement procurement office, the Navy and the General Secretariat of the Sea, backs the exhibition. 

The US, being the largest national naval market, is stable with annual sales of some $12 billion, Boissier told a news conference, while the region comprising Southeast Asia, India and Australia has sales worth some $12 billion, excluding future submarine deals. 

Europe has steady sales of $10-11 billion, while China and Russia each are acquiring some $3-4 billion. 

There is strong interest in submarines, with 45 countries sailing some 450 boats, he said. 

Read the full story at DefenseNews

Industry: Austal awarded Armidale class patrol boat remediation work

An Armidale Class Patrol Boat

Austal Limited (Austal) (ASX:ASB) is pleased to announce that Austal Australia will deliver an important mid-life remediation program to the Royal Australian Navy’s Armidale Class Patrol Boat (ACPB) fleet.

Austal will undertake a number of hull remediation and configuration changes as well as planned and corrective maintenance work on up to seven (7) ACPB’s at the company’s Henderson, Western Australia shipyard from October 2016.

The activity, won in a domestic and international environment, will provide immediate, ongoing work for over 120 Austal employees and provides continuity of work between the completion of two Cape-class Patrol Boats for the Royal Australian Navy and a major export contract for Mols Linien, commencing April 2017.