The US Navy has exercised contract options funding the construction of the sixth and seventh joint high speed vessel (JHSV), as part of a ten-vessel programme potentially worth over US$1.6 billion. The construction contract for both vessels is valued at approximately US$313 million.
As prime contractor, Austal was awarded the construction contract for the first 103-metre JHSV in November 2008, with options for nine additional vessels between FY09 and FY13. The Austal JHSV team includes platform systems engineering agent General Dynamics Advanced Information Systems, which is responsible for the design, integration and testing of the ship's mission systems, including internal and external communications, electronic navigation, and aviation and armament systems.
"With options remaining for a further three vessels, the JHSV program is expected to deliver a predictable revenue stream of AU$330 million (US$350 million) per annum from 2012 to 2015, which is approximately 60 percent of Austal's historical revenue," commented Austal Chief Executive Officer, Andrew Bellamy. Austal's Asutralian operations have been hit hard in recent months due to the increasing strength of the Australian dollar.
Austal received authorisation from the Navy to start construction on the first vessel of the contract, 'Spearhead' (JHSV 1), in December 2009. 'Spearhead' is scheduled for launch in August 2011 and delivery in December 2011. Construction on 'Vigilant' (JHSV 2), began at Austal's Mobile, Alabama, USA shipyard on September 13, 2010.
Austal is also currently building a second Independence-variant 127-metre littoral combat ship (LCS) for the US Navy, 'Coronado' (LCS 4), which is scheduled for launch in September 2011. As prime contractor, Austal recently received a U.S. Navy contract for construction of up to an additional 10 littoral combat ships, including 'Jackson' (LCS 6) and 'Montgomery' (LCS 8), to be appropriated in the following five years. Once commissioned, these 10 vessels will join the Austal-built USS 'Independence' (LCS 2), which was commissioned in January 2010.
