State to build on strengths

Brent Christensen, Mississippi Development Authority’s executive director, foresees the state in 2015 to continue to build on its economic strengths. MDA expects the state to reap the rewards of several large projects that begin production in the coming year. MDA is targeting seven industries in the state for growth: aerospace, advanced manufacturing, agribusiness, automotive, energy, healthcare and shipbuilding sectors. McDermott International plans to locate a pipeline operation at the Port of Gulfport expected to create 100 jobs, in addition to longshoremen who will be employed while vessels are at port. McDermott represents the first major jobs announcement of the Port of Gulfport Restoration Project. (Source: Mississippi Business Journal, 12/30/14)

Contract: Northrop, $19M

Northrop Grumman Systems Corp., Bethpage, N.Y., is being awarded a $19,082,605 modification under a previously awarded contract (N00024-06-C-6311) to provide integration services for mission packages that will deploy from and integrate with the Littoral Combat Ship (LCS). The Navy's plan is to use continuous evaluation of system maturity through a disciplined system engineering framework to improve mission capability in identified mission areas. LCSs mission packages will be optimized for flexibility in the littorals. Mission package capabilities are currently focused on primary mission areas of mine warfare emphasizing mine countermeasures, littoral anti-submarine warfare, and littoral surface warfare operations, including prosecution of small boats. Work will be performed in Bethpage (47 percent); Washington, D.C. (13 percent); Oxnard, Calif. (12 percent); Dahlgren, Va. (9 percent); Panama City, Fla. (8 percent); San Diego, Calif. (7 percent); Middletown, R.I. (2 percent); Hollywood, Md. (1 percent); and Andover, Mass. (1 percent), and is expected to be completed by June 2015. Fiscal 2014 and 2015 research and development; fiscal 2015 operations and maintenance (Navy); and fiscal 2014 and 2015 other procurement (Navy) contract funds in the amount of $2,400,000 will be obligated at time of award and funds in the amount of $7,119,720 will expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity. (Source: DoD, 12/30/14)

CG cutter competition heating up

BATH, Maine – At Bath Iron Works’ sprawling shipyard, workers are building five Navy destroyers, but talk is about potential job losses. Hundreds of new hires have pushed BIW’s employment rolls to the highest in years. But, leaner times may be on the horizon. Managers at the General Dynamics-owned shipyard are warning that less Navy work ahead could eliminate up to 1,200 jobs. The prospect has BIW feverishly looking for ways to cut costs. Eyes are focusing on a “must win” contract to build Coast Guard cutters. BIW’s lone customer has been the Navy. BIW President Fred Harris alarmed union leadership this fall by announcing a formal process to outsource some of the shipyard work – to reduce costs. Union leaders insist lowering costs can be accomplished if the company provides laborers accurate designs and ensures materials are on hand, not outsourcing. BIW’s competitor, Huntington Ingalls shipyard in Pascagoula, Miss., has also built destroyers for the Navy. The likelihood of big destroyer contracts are diminishing and likely will only include one new contract per year for the foreseeable future. This is where the CG contract comes in. (Source: Portland (Me.) Press Herald 12/28/14) Gulf Coast Shipbuilding: BIW is one of three shipyards competing to land the CG contract to build up to 11 offshore patrol cutters (OPC). The other two are on the Gulf Coast: Bollinger Shipyards of Lockport, La., and Eastern Shipbuilding of Panama City, Fla. They are smaller, more diversified, non-union yards. Bollinger already builds fast-response cutters for the CG as part of a 34-ship contract. VP Robert Socha says about half of Bollinger’s work is building tugs, barges and vessels for the commercial sector, which is more price-conscious than the military. But, asked how Bath can compete against the other yards, a Maine Local S6 union president had a blunt response: “We’re better than them.”

90’s-built Ingalls DDGs modernized

The Navy's Arleigh Burke Class guided missile destroyer modernization program met a milestone for two Ingalls-Pacagoula, Miss.-built destroyers, according to Naval Sea Systems Command. The milestone is the installation and testing of a new Aegis combat system software package for USS Barry (DDG 52) and USS Benfold (DDG 65), launched from Ingalls in 1991 and 1994 respectively. The modernization program for DDG-51 class ships keep pace with evolving threats and meeting service life requirements for future commitments. Both destroyers successfully executed sea trials following the test. The new software package (baseline 9C) includes an Aegis Weapon System upgrade and introduces an enhanced SPY-1D radar with a multi-mission signal processor for anti-air warfare and ballistic missile defense; and the addition of anti-submarine warfare upgrades. The ships are expected to return to the fleet by early 2015; and forwardly-deployed in Japan by 2017. (Source: Mississippi Press, 12/22/14) http://blog.gulflive.com/mississippi-press-news/2014/12/ingalls-built_destroyers_getti.html

USM looks at Gulf’s ‘Blue tech’ biz

USM looks at Gulf’s ‘Blue tech’ biz A new Mississippi maritime industries study spotlights the importance of shipbuilding, fishing, oceanography and marine technology as a dominant force in the state’s economy. Data from the Mississippi’s Blue Economy: An Analysis of Mississippi’s Maritime Industry study shows that 35 percent of the workforces in the three coastal state counties are in “blue industries.” And it’s not just the Mississippi Gulf Coast that has a stake in the blue economy. The study looked at employment and other data on shipbuilding and fishing as well as industries such as construction that have maritime and non-maritime activities. It also included maritime technology or “blue tech” companies. The study was compiled by three members of the Masters of Economic Development Program at the University of Southern Mississippi. Laurie Jugan, project coordinator for the Mississippi Enterprise for Technology at Stennis Space Center, said the study confirms an expansive amount of marine science and technology work being done: along the Mississippi Coast. “Until now, there was no way to quantify the importance of this industry sector in our area,” she said. “With the USM study, we now have a place to start.” The Small Business Administration awarded MSET a competitive $523,742 grant based on the study’s findings. (Source: Mississippi Business Journal, 12/18/14)

Contract: Austal USA, $14.4M

Austal USA, Mobile, Ala., is being awarded a $14,359,433 cost-plus-fixed-fee modification to a previously awarded contract (N00024-11-C-2301) to exercise an option for class services in support of the Littoral Combat Ship (LCS) program. Austal will provide engineering and design services, as well as affordability efforts to reduce LCS acquisition and lifecycle costs. Work will be performed in Mobile (72 percent), and Pittsfield, Mass. (28 percent), and is expected to be completed by December 2015. Fiscal 2013 shipbuilding and conversion (Navy) funding in the amount of $4,000,000 will be obligated at the time of award and 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, 12/19/14)

Ingalls, Signet get tax breaks

PASCAGOULA, Miss. -- Pascagoula leaders this week granted two 10-year ad valorem tax exemptions to Ingalls Shipbuilding and Signet Maritime Corp. for new machinery and equipment. The property receiving the exemption has a true value of some $19.2 million. The bulk of that, about $18.1 million, is attributable to Ingalls Shipbuilding's Pascagoula yard. Ingalls, which has more than 10,000 employees and an annual payroll of $596.5 million, is receiving the exemption on hundreds of items. Tax exemptions such as these are granted by cities and counties as an incentive for companies to invest in their local operations. (Source: Mississippi Press, 12/18/14)

VT Halter cited in crane collapse

PASCAGOULA, Miss. -- VT Halter Marine shipyard was cited by the U.S. Department of Labor's Occupational Safety and Health Administration for five safety violations in connection with the collapse of two cranes June 25. Five employees were injured when several cranes were moving a bow module of a ship at the Pascagoula yard. One crane hit the corner of a tool and equipment warehouse where people were working. OSHA issued the citations Tuesday and the proposed penalties of $29,000. (Source: Sun Herald, 12/18/14)

Contract: Raytheon, $26M

Raytheon Co. Integrated Defense Systems, San Diego, Calif., is being awarded a $26,050,551 cost-plus-fixed fee contract for life cycle engineering and support services for LPD 17 class integrated shipboard electronic systems. This contract includes options which, if exercised, would bring the cumulative value of this contract to $132,122,998. Work will be performed in San Diego (90 percent); Norfolk, Va. (4 percent); Pascagoula, Miss. (2 percent); Mayport, Fla. (2 Percent); and Japan (2 percent), and is expected to be completed by December 2019. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-15-C-2414). (Source: DoD, 12/18/14)

Save navigation app for Mobile Bay

Interactive software that dramatically cuts the time it takes to plan safe submarine navigation is crossing over to the surface side of the U.S. Navy’s fleet; and being installed this month on the guided-missile cruiser USS Mobile Bay. Sponsored by ONR, the technology adds speed and precision the process of finding the best routes around hazards in waterways around the world. Through partial automation and use of apps and widgets, ONR’s Mission Planning Application technology can review thousands of chart markings in a fraction of the time, pinpointing potential hazards and creating optimal routes. What now takes days could now only take hours, freeing commanders to safely execute their mission. (Source: Seapower magazine, 12/16/14) Gulf Coast Shipbuilding Note: USS Mobile Bay (CG-53) was built at Ingalls Shipbuilding in Pascagoula, Miss., and commissioned Feb. 21, 1987.

Textron NOLA begins hovercraft

NEW ORLEANS – Textron Systems New Orleans is marking the start of production of the Navy's new, aluminum-hull hovercraft that’s designed to haul heavy equipment and supplies over water and beaches. Crews are currently making a test and training model of the "Ship to Shore Connector" hull, says Tom Williams, spokesman for Textron. It's expected to be completed in 2017. Production model work is expected to start in early 2015. The contract, worth $212 million for a design/build; and another $358 million for eight craft by 2020, was announced in July 2012. The Navy ultimately plans to buy 72 production models. Textron has been making amphibious landing craft for 20 years. The older ones are being fitted with new equipment, a process expected to continue into 2016. (Source: The Associated Press, 12/15/14)

12th LPD in budget

The Senate voted Saturday night to approve a $1.1 trillion deal sending the legislation to President Barack Obama for his signature after an unusual weekend session and days of drama in the House. In the end, the Senate passed the $1.1 trillion spending bill, 56-40. Mississippi’s Ingalls Shipyard secured a 12th LPD 17 San Antonio-class amphibious warship - saving about 3,000 jobs. Also, some other key Gulf Coast provisions are: three Littoral Combat Ships - plus advanced funding for a fourth - and an 11th Joint High Speed Vessel for the Mobile, Ala.-based Austal USA shipyard; nearly $1 billion for partial funding of a new amphibious ship, LPD 28 expected to be built at Ingalls in Pascagoula; and 55 Lakota Light Utility Helicopters, which are made by Airbus Helicopters in Columbus, Miss. (Source: Defense News, 12/12/14). Gulf Coast states' senators voting for and against the measure: "Yes" is for passage: Landrieu, D-La.; Nelson, D-Fla.; Cochran, R-Miss.; Wicker, R-Miss. “No” votes: Sessions, R-Ala.; Shelby, R-Ala.; Vitter, R-La. ... Not voting: Feinstein, D-Calif.

DOD opts to upgrade LCS

Defense Secretary Chuck Hagel approved Dec. 11 the Navy's plan to meet its requirement for 52 Small Surface Combatant warships by upgrading Littoral Combat Ship designs, by Austal USA of Mobile, Ala., and Lockheed Martin, instead of starting from scratch with more costly ones. SECDEF said he accepted Navy's recommendation to make the current designs more lethal and survivable by adding an array of missiles and radars. Navy acquisition chief Sean Stackley said officials would hammer out details about the upgrades in coming months; and planned to finalize strategy for buying new ships in time for the FY 2017 budget. The next eight LCS would still be in the current configuration, although some upgrades could be added. Planned upgrades to existing LCS ships would add $60-to-$75 million - less than 20 percent - to the current cost, about $360 million in the latest signed contracts, he said. The Navy has 20 LCS ships under contract, plus options for four. The next eight will still be in the current configuration, but some upgrades may be added. The final 20 ships will carry the new equipment, with the first of those ships to be procured in FY-19. (Reuters, 12/11/14).

Contract: Bath Iron Works, $21.1M

Bath Iron Works, Bath, Maine, is being awarded a $21,192,127 modification to previously awarded contract (N00024-12-C-2313) to exercise options for DDG 51-class lead yard services. This work will provide class engineering and design services including technical assistance to the follow shipbuilders in the interpretation and application of the detailed design developed by Bath Iron Works, the lead yard contractor. Lead yard services include: liaison for follow ship construction, general class services, class logistics services, class design contractor services, class changes design services for follow ships, noise, shock, and vibration program, and special studies. Work will be performed in Brunswick, Maine (69 percent); Bath (28 percent); Washington, D.C. (2 percent); and Pascagoula, Miss. (1 percent), and is expected to be completed by December 2015. Fiscal 2011 and 2012 shipbuilding and conversion (Navy) contract funds in the amount of $21,192,127 will be obligated at time of award and 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, 12/11/14)

CG rescues rafter in Gulf

NEW ORLEANS – A Coast Guard Air Station New Orleans MH-65 Dolphin helicopter and aircrew rescued a man from a life raft 30 miles south of Venice, La., on Dec. 10. A crewman aboard the vessel Harvey Pacer notified CG Sector New Orleans after receiving a ‘Mayday’ call from the sailing vessel Amsheet, which reported striking an unknown object. The aircrew hoisted a man aboard from a life raft and transported him back to CGASNO. There were no reported injuries. "The survivor was very well prepared with proper clothing, life preserver, life raft and a radio,” said Lt. Jay Kircher, an air station pilot. The survivor also had a satellite GPS tracking device onboard his life raft which gave the CG periodic position updates and limiting the amount of search time needed for recovery. (Coast Guard, 12/10/14). Watch GC Aerial Rescue Video.

Prez losing grip on DOD budget?

President Barack Obama may be losing some control over Defense Department budgeting that he had clawed away from military commanders. Service chiefs and Congress are conspiring to undo those sequestration spending decisions. The result is an omnibus spending package – yet to be approved - for the remainder of FY-2015 that includes money to buy lots of weapons the Pentagon didn’t request, but wants now. It amounts to more than $3 billion more in procurement funding above the Pentagon’s requests - and packed with holiday goodies for top defense contractors like aerospace giants Boeing (15 unrequested EA-18G Growlers) and Lockheed Martin (two extra F-35As). (Source: Politico, 12/10/14) Gulf Shipbuilding Note: Other items on the unfunded lists that got a boost are: The Navy’s Joint High Speed Vessel built at Austal USA shipyards in Mobile, Ala.; and a 12th LPD-17 amphibious ship to be built at HII’s shipyard in Pascagoula, Miss.)

House OKs next LPD-17

The U.S. House of Representatives passed a $577.1 billion measure Dec. 4 rejecting Defense Department efforts to cut costs. The legislation allows the radar-jamming A-10 ‘Thunderbolt’ aircraft to keep flying and continue purchases from Boeing. The bill passed the House 300-119. The Senate will likely follow suit next week. The Air Force tried to pressure Congress to retire the entire A-10 fleet. Industry winners: Raytheon (96 Tomahawk missiles for $82M); Boeing (five EA-18G Growlers for $450M); and Lockheed Martin, which would see DOD’s full budget request for F-35 Joint Strike Fighters. The measure also allows some $800 million for one additional LPD-17 San Antonio class amphibious ship to be built at Huntington Ingalls Industries’ Pascagoula, Miss., shipyard. (Source: Bloomberg, 12/04/14)

Potential freeze on LCS

U.S. lawmakers have frozen the construction of a pair of new Littoral Combat Ships – numbers 25 and 26 - until the Navy provides the House and Senate defense committees with specific analytical reports on the program, according to a newly released Congressional budget agreement. That agreement, as part of the National Defense Act for FY 2015 which Congress will vote on before Christmas, emerged from conference session between House and Senate committees responsible for passing the defense budget. The road block is the most recent in a string of controversies and disagreements – as to whether it’s lethal enough - on the future of the LCS program. The congressional agreement prevents the Navy from spending money next year on the LCS’ mission modules – surface, mine countermeasures and anti-submarine warfare packages - until the Navy Secretary Ray Mabus submits a report establishing goals and scheduling information about acquisition and testing. (Source: Defense Tech, 12/03/14). Gulf Coast Shipbuilding Note: Austal USA shipyard at Mobile, Ala., builds one of the two competing variants of the LCS.

HII: Cooler heads to prevail

Huntington Ingalls Industries CEO Mike Petters is optimistic that lawmakers will eventually ease budget caps on military spending that’s dampening investment in longer-term weapons research. "Cooler heads have a way of prevailing on something like this," he said. HII is initially insulated from the "sequestration" cuts - given its long-term Defense contracts - but work on new Gulf Coast and Virginia-based ship programs are going to require longer-term investment decisions. Uncertainty has made in difficult for large and small companies to invest in technologies and processes that could drive costs down, he said. DOD is facing cuts of nearly $1 trillion in projected spending over the decade. (Source: Reuters, 12/02/14) Gulf Coast Shipbuilding: HII is building the LPD-17 amphibious ship at its Pascagoula, Miss., shipyard. Petters is hoping lawmakers will fund a 12th LPD-17.

Ingalls, unions extend contract

PASCAGOULA, Miss. -- Union members at Ingalls Shipbuilding agreed Monday to accept a three-year extension to their contract, taking the current agreement to March 2018. The agreement includes incremental raises and a bonus. The proposal was agreed upon by the company and the Pascagoula Metal Trades Council and local chapters of the International Brotherhood of Electrical Workers, United Federation of Special Police and Security Officers and Office and Professional Employees International Union. The International Association of Machinists did not ratify the agreement, but the union has asked for continued discussion. (Source: Mississippi Press, Sun Herald, 12/01/14)

Contract: Lockheed, $54.6M

Lockheed Martin Corp., Mission Systems and Training, Moorestown, N.J., is being awarded a $54,632,457 modification to a previously awarded contract (N00024-14-C-5104) to exercise option year one for ship integration and test of the Aegis weapon system (AWS) for AWS baselines through advanced capability build (ACB) 12. The contract provides for Aegis shipboard integration engineering, Aegis test team support, Aegis modernization team engineering support, ballistic missile defense test team support, and AWS element assessments. This contract will cover the AWS ship integration and test efforts for five new construction DDG 51 class ships and the major modernization of five DDG 51 class ships. It will additionally cover the integrated combat system modifications and upgrades for all current ships with all AWS baselines up to and including ACB 12. Work will be performed in Moorestown (30 percent); Norfolk, Va. (18 percent); San Diego, Calif. (18 percent); Bath, Maine (13 percent); Pascagoula, Miss. (11 percent); Washington, D.C. (6 percent); Pearl Harbor, Hawaii (2 percent); Syracuse, N.Y. (1 percent); and other locations (1 percent), and is expected to be completed by November 2015. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. (Source: DoD, 12/01/14)

'Ash' Carter: SECDEF lean

Deputy Defense Secretary Robert “Bob” Work traveled to Afghanistan to visit U.S. service members during the Thanksgiving holiday, It was his second trip since being named deputy to outgoing Defense Secretary Chuck Hagel – and third overall. Hagel has resigned as the Obama Administration’s third SECDEF in six years. Work is among a handful of potential replacements. Among others are Homeland Security Secretary Jeh Johnson, former Deputy Defense Secretary Ashton Carter, former Mississippi governor and current Navy Secretary Ray Mabus, Air Force Secretary Deborah Lee James and Rep. Adam Smith (D-Wash.), the ranking Democrat on the House Armed Services Committee. (Source: Politico, 11/26/14) Gulf Coast Shipbuilding Note: Work, who could serve in an acting capacity, was undersecretary of the Navy from 2009-13 and is considered a leading sea power expert and has advocated for the Littoral Combat Ship program. Mobile, Ala., shipyard Austal USA is one of the two builders of LCS. Mabus has recently attracted scrutiny for spending nearly $5 million on travel around the world. 2nd Gulf Coast Shipbuilding Note: President Obama has selected Ashton B. ‘Ash’ Carter to be the next defense secretary, senior White House officials said Dec. 2, elevating the physicist and former DOD chief weapons buyer to succeed Chuck Hagel. As a former deputy defense secretary, Carter helped accelerate the production and shipment of weaponry and armored vehicles to American troops during the wars in Iraq and Afghanistan. Carter’s formal nomination is expected in the next few days, aides said. He is the only one of several top prospects who did not take himself out of the running for the job. Jeh Johnson – a contentious figure among Obama’s supporters on the political left - took his name out of play Dec. 1. (Source: NY Times, 12/03/14)