11 Steel US Coastguard Cutter Contract To Be AnnouncedEarly Next Year
(a) In June 2020, the US government granted $50 million dollars to Austral to assist with upgrading the Mobile Alabama ship yard in order to allow it to convert to making steel ships.see here https://www.austal.com/news/us-government-invest-us50m-austal-usa-shipbuilding-and-maintenance-capacityIn1
The article states that the investment is to 'commence investment inthe development of additional capacity for steel naval vessel constructionat the Mobile shipyard'. It should be also noted that not only did Austral not match this $50 million, it added an addition $200 million of itsown money after this grant to upgrade the Alabama yard for steel ship building.
(b) In February 2021, the US coastguard put out expressions of interest for bids on 11 steel (not aluminum) coast guard ships. Due to the previous contractor both failing to deliver adequately and a hurricane hitting their ship yard.
see this article;
https://www.dcms.uscg.mil/Our-Organization/Assistant-Commandant-for-Acquisitions-CG-9/Newsroom/Latest-Acquisition-News/Article/2488495/coast-guard-releases-request-for-proposal-for-offshore-patrol-cutter-follow-on/
(c) On March 29, 2021, Forbes reported here on the bidding,
https://www.forbes.com/sites/craighooper/2021/03/29/us-coast-guard-seeks-builders-for-big-new-cutters/?sh=6d5a78504085
stating that;
With little time to lose, competing yards will have an edge if they reducedesign-build risks or, outside of the design, show they have hardenedfacilities or resilient strategies to overcome storms, flooding or other likelycoastal disasters with minimal disruption......A shipyard that alreadyhas complex government cost-and-program management systems in place(see point (a)) —the tools required for the government to understand how the project is advancing—will likely be appreciated.
(d) May 28, 2021 - Submissions to win contract for 11 steel ships for us coastguard closed after being open for just 3 months.
(e) 24th August 2021, in the annual report, it was stated that 'howthe nature of our business – being heavily skewed to defence – can withstandthe current economic and operational challenges'.
(f) In a 13th September 2021 the interview with Defence News, Austral VP, about the Mobile Alabama shopyard
https://www.defensenews.com/digital-show-dailies/navy-league/2021/09/13/austal-ahead-of-schedule-in-yard-upgrades-but-still-awaiting-ships-to-build/it
VP Ryder said;
The company is investing about $200 million to improve and expand itsshipyard and to grow its ship repair business, About half of that is meant toconvert half the production lines at the shipyard to work with steel ratherthan aluminum, the yard is ahead of schedule on making themodifications, ahead of a planned April 2022 kickoff of the steel shipyardcapability. (note that the contract winner will be announced early 2022)
We’re optimistic that things will work out in the in the budget process andwe’ll be able to keep our folks onboard and in transition to a more stableproduction on the on the steel side as the Navy settles in on theseprograms, (referring to the above mentioned 11 steel US coastguard ship program)
(g) I emailed Austral yesterday and asked about whether or not they put a bid in on time May 2021 on this contract for 11 new US steel Coastguard boats and how many other companies bid for the contract.
Austral responsed via email to me within 24 hours stating that;
I confirm Austal submitted a bid for the OPC project in line with thetimings you have outlined below. The US Department of Defense does not releasethe details of other bidders so we are unable to shed any light on that or yourother questions unfortunately. We will of course keep you and the rest ofthe market appraised of relevant developments on that and other projects asthey come to light.
(h) Mobile Alabama is the third largest city in Alabama and Austral USA is one of the cities biggest employers, employing approximately 4000 local workers. The city has a population of around 100,000 people, making 4% of the city's population employees of Austral.
The question I am no asking mysef is; why would the US Government and Austral have invested $250 million dollars to upgrade the Mobile Alabama facity to shift from aluminium to steel Shipmaking if they didnt know for abosolute certainty that they would get contracs to build steel ships into the future?
(20min delay)