Navy awards Ingalls $9.5B in amphibious ship contracts

Multi-ship procurement approach is projected to achieve more than $901 million in cost avoidance as compared to the use of annual contracts. [U.S. Navy photograph]

Naval Sea Systems Command (NAVSEA) reports that the Navy has awarded Huntington Ingalls Industries, Ingalls Shipbuilding Division amphibious ship procurement contracts totaling $9,472,132,620. They cover the procurement of one America-class amphibious assault ship (LHA) and three San Antonio-class amphibious transport dock (LPD) ships.

The award was executed across two separate contracts to utilized a multi-ship procurement approach. By using this strategy, as authorized by Congress, says NAVSEA, the Navy is projected to achieve more than $901 million in cost avoidance as compared to the use of annual contracts.

The long-term contract agreements align with Secretary of the Navy Carlos Del Toro’s maritime statecraft initiatives to make naval shipbuilding more cost effective while promoting shipyard stability and investment. The agreements provide stable shipyard workload well into the early 2030s, providing a consistent demand signal to vendors.

“The importance of this multiple amphibious ship purchase cannot be overstated with respect to our whole-of-government effort to restore the maritime capabilities of the United States,” said Del Toro. “This purchase sends a steady demand signal to our shipbuilding industrial base that our Navy is actively investing in our shipbuilding infrastructure.”

NAVSEA notes that the awards are consistent with the Commandant of the Marine Corps’ projected force structure requirements and demonstrates the Navy’s commitment to maintaining 31 amphibious ships.

The America-class of amphibious assault ships operate as the centerpiece of ARG/MEU operations and Marine Expeditionary Brigade with accommodations for ship’s company, troops, vehicles, and equipment. The San Antonio-class of amphibious transport dock ships are designed to embark, transport, and deploy ground troops and equipment.

“This multi-ship procurement provides the long-term stability our shipbuilders and vendors require, enabling them to deliver product effectively, help support and retain a talented and critical workforce, and invest in the infrastructure required to sustain and grow our shipbuilding capability and capacity,” said Assistant Secretary of the Navy Acquisition, Research and Development, Nickolas Guertin.

“This multi-ship procurement will deliver critical amphibious warfare capability to support the Navy and Marine Corps mission,” said Capt. Matthew Tardy, program manager, Amphibious Warfare Program, Program Executive Office (PEO) Ships. “The partnership between the Navy and Ingalls Shipbuilding is important. We are proud to be working with their talented workforce to build and deliver highly capable ships and provide needed stability for the shipbuilding industrial base.”

​​​​​​​“We greatly appreciate the stability that this award provides to all Ingalls shipbuilders and our surrounding communities,” Ingalls President Kari Wilkinson said. “It is an honor to continue our support of the joint Navy and Marine Corps mission to meet the minimum 31-amphibious-ship requirement.”

Approximately half of all Ingalls shipbuilders build amphibious ships today, with another 650 supplier partners in 39 states across the U.S. that provide components for the construction of amphibious ships.

“We stand ready to reinforce an already strong team of capable shipbuilders with the ideas and skills of new shipbuilders that want to make a difference in the world,” Wilkinson said. “There is no greater sense of accomplishment than doing something difficult in support of our nation’s military.”