Ingalls Shipbuilding gets $76 million to buy materials for seventh NSC

Huntington Ingalls Industries (NYSE:HII) reports that its Ingalls Shipbuilding division has received a $76 million fixed-price contract from the U.S. Coast Guard to purchase long-lead materials for a sixth National Security Cutter (NSC). Construction and delivery of the yet-to-be-named WMSL 755 will be performed at the company’s Pascagoula facility. A second phase of the contract, when awarded, would bring the overall value to $88 million.

The advance procurement funds will be used to purchase major items for WMSL 755, including steel, the main propulsion systems, generators, electrical switchboards and major castings.

“This award demonstrates the Coast Guard’s ongoing commitment to the National Security Cutter program and continued confidence in our shipbuilders,” said Mike Duthu, Ingalls’ program manager, Coast Guard programs. “This procurement contract enables us to focus on effective and efficient supply chain management so we can secure the best price for equipment and materials, while also meeting our schedule commitments with our U.S. Coast Guard customer.”

Ingalls has delivered the first three NSCs, the flagship of the Coast Guard’s cutter fleet, designed to replace the 378‐foot Hamilton-class high-endurance cutters, which entered service during the 1960s. The first two ships are performing missions for the Coast Guard, while the third ship, Stratton (WMSL 752), was commissioned on March 31 in Alameda, Calif. The fourth NSC, also named Hamilton (WMSL 753), is currently under construction, and the fifth, Joshua James (WMSL 754), will start fabrication later this year.

Ingalls builds the NSC hulls and mechanical and electrical systems, while Lockheed Martin builds and integrates the command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) capabilities.

NSCs are 418 feet long with a 54-foot beam and displace 4,500 tons with a full load. They have a top speed of 28 knots, a range of 12,000 miles, an endurance of 60 days and a crew of 110.

April 1, 2012