Somali pirates murder four American hostages held on S/V Quest

The four American hostages held aboard the hijacked yacht Quest by Somali pirates have been murdered by their captors. Of the 19 pirates believed involved in the incident, four are dead and

Somali pirates murder four American hostages held on S/V Quest

The four American hostages held aboard the hijacked yacht Quest by Somali pirates have been murdered by their captors. Of the 19 pirates believed involved in the incident, four are dead and

U.S.Coast Guard issues new piracy directive

The U.S. Coast Guard has issued a directive for U.S,.-flag ships operating in waters where the risk of pirate attack is high. Maritime Security (MARSEC) Directive 104-6 (Rev. 4), Guidelines for U.S.

Liberia meets new Paris MOU criteria

Liberia has been confirmed as one of eleven flag states that to date have met the criteria set to participate in NIR — the New Inspection Regime (NIR) for Low Risk Ships

Pirate gets 30 year prison sentence

In the United States District Court for the Eastern District of Virginia, Judge Raymond A. Jackson today sentenced Jama Idle Ibrahim, a/k/a Jaamac Ciidle, of Somalia ,to 30 years in prison for

U.S. court convicts five Somalis of piracy

A federal jury in Norfolk, Va., on Wednesday convicted five men from Somalia of engaging in piracy and related offenses in their attack on the USS Nicholas. It is believed to be

Indian warship fires warning shots ahead of Restis bulker

The Indian Navy today fired warning shots ahead of a Restis Group bulker, the 57,000 dwt Bahamas-flag Dynamic Striker. The ship, managed by Restis’s Enterprises Shipping and Trading, arrived in Mumbai October

Somali pirates hijack chemical tanker

Early this morning, Nov.11, the MV HANNIBAL II was pirated whilst on route from Malaysia to Suez. Eu Navfor says the 24,105 tonne chemical tanker, a Panamanian-flagged vessel ,was carrying vegetable oils

Pirates extort record ransom

 

The 319,360 dwt, Marshall Islands registered, Samho Dream with a crew of five Koreans and 19 Filipinos, was released at around 11:30 p.m., Saturday night, according to the Korean Ministry of Foreign Affairs and Trade.

The owner, Samho Shipping, reportedly paid a ransom of more than $9 million — the largest amount thus far extorted from a shipowner by Somali pirates.

The ship had been seized approximately 600 nautical miles off the Somali coast carrying roughly $170 million worth of Iraqi crude oil.

An official from the Foreign Ministry said yesterday that “the Samho Dream is currently being escorted to a safe location by the Korean naval ship Wang-gun from the Cheonghae Unit, and is expected to land at the port of Salalah in Oman this Thursday.”

The president of Samho Shipping, Sohn Yong-ho, told Joonang Daily that the crew is in good condition, but he would not disclose the exact amount paid to the pirates, nor how much of the ransom came from insurance payouts.

The Singapore-registered chemical tanker MV Golden Blessing was also released by pirates Saturday, It had been seized on June 28 and carrying a crew of 19 Chinese was released for a reported ransom of $2.8 million.

November 8, 2010

Navy comments on new LCS acquisition plan

It is looking to order ten ships from Austal USA and ten from the Lockheed Martin, Marinette Marine team.

The Navy says that “effective competition between industry bidders to build the littoral combat ship (LCS)” led it to discuss the ten ships each plan with key Defense Committee members and their staff, as well as industry.

It says that “consideration of this option is separate from the ongoing LCS down select process, and if congressional approval for a dual block buy is not received, the Navy will proceed to down select in accordance with the terms of the current solicitation.”

It maintains that either a down select or a dual ship block buy approach will ensure the Navy procures affordably priced ships.

“This option is good for the taxpayers because it enables us to buy more ships for the same money and allows us to lock in a lower price for all 20 ships,” said Secretary of the Navy Ray Mabus. “It’s good for the Navy because it gets us more ships faster and increases our flexibility, and it’s good for industry because it maintains and even expands jobs at two shipyards.”

Unlike the current solicitation, this option would require Congressional action to authorize two block buys by mid-December 2010.

“The Navy’s LCS acquisition strategy to down select to a single design resulted in a highly effective competition and an industry response that signals a significant potential savings in the LCS program,” said Sean Stackley, assistant secretary of the Navy for research, development and acquisition. “These competitive bids, coupled with the Navy’s desire to increase ship procurement rates to support operational requirements, create an opportunity to award each bidder a fixed-price, ten-ship block buy – a total of 20 ships from fiscal year 2010 to fiscal year 2015.”

The Navy says it remains committed to the LCS program and the requirement for 55 of these ships to provide combatant commanders with the capability to defeat anti-access threats in the littorals, including fast surface craft, quiet submarines and various types of mines.

Though Secretary Mabus’s proposal seems to have caught most observers by surprise, a recent Congressional Research Service report by veteran analyst Ronald O’Rourke, published October 14, had this to say:

One alternative [to the down select would be a strategy that would keep both LCS designs in production, at least for the time being. Such a strategy might involve the following:

  • the use of block-buy contracts with augmented EOQ authority, as under the Navy’s proposed acquisition strategy, to continue producing both LCS designs, so as to provide stability to shipyards and suppliers involved in producing both LCS designs;
  • the use of Profit Related to Offer (PRO) bidding between the builders of the two LCS designs, so as to generate competitive pressure between them and thereby restrain LCS production costs;18 and
  • designing a new LCS combat system that would have a high degree of commonality with one or more existing Navy surface ship combat systems and be provided as government-furnished equipment (GFE) for use on both LCS designs–an idea that was considered by the Navy at an earlier point in the program.

Supporters of an alternative like the one outlined above could argue that it would

  • provide stability to LCS shipyards and suppliers;
  • use competition to restrain LCS production costs;
  • permit the Navy to receive a full return on the investment the Navy made in creating both LCS designs;
  • reduce the life-cycle operation and support costs associated with building two LCS designs by equipping all LCSs with a common combat system;
  • allow the Navy to design an LCS combat system that is, from the outset, highly common with one or more of the Navy’s existing surface ship combat systems;
  • achieve a maximum LCS procurement rate of four ships per year starting in FY2011 (two years earlier than under the Navy’s proposal), thus permitting more LCSs to enter service with the Navy sooner;
  • build both LCS designs in substantial numbers, thereby avoiding a situation of having a small number of orphan LCS ships that could have potentially high operation and support costs;
  • preserve a potential to neck down to a single LCS design at some point in the future, while permitting the Navy in the meantime to more fully evaluate the operational characteristics of the two designs in real-world deployments; and
  • increase the potential for achieving foreign sales of LCSs (which can reduce production costs for LCSs made for the U.S. Navy) by offering potential foreign buyers two LCS designs with active production lines.

Maybe the Secretary of the Navy read Ronald O’Rourke’s report. Maybe Mr. O’Rourke is a seer.

 

Nov 5, 2010

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