MOBILE, Ala. – Austal, a global defense contractor, designer, and manufacturer of defense and commercial ships, was awarded a $53.4 million contract to procure long-lead materials for the 11th Expeditionary Fast Transport for the U.S. Navy.
The award covers materials including main propulsion engines, generators, water jets, main reduction gears, and other long-lead time items.
“We are excited that the Navy is building on the momentum and the maturity of the original contract and extending it beyond the first ten ships,” said Austal USA President Craig Perciavalle. “We look forward to building on Austal’s relationship with the U.S. Navy by continuing to provide quality, value and capability in our ships.”
This award comes after Austal delivered its third state-of-the-art, Mobile-built combat ship to the U.S. Navy this year.
Austal was awarded a $1.6 billion contract in November 2008 that initiated the Navy’s Joint High Speed Vessel (JHSV) program. The 2008 contract was set for Austal to build 10 joint high speed vessels for the U.S. Navy, with five JHSVs having currently been delivered while an additional three are in various stages of construction.
However, the Navy is now extending the original contract and providing funding to initiate procurement of long-lead materials for Expeditionary Fast Transport (EPF) ships. The structure of the EPF provides the opportunity to conduct a wide range of missions, from humanitarian efforts and disaster relief to the possibility of special operations support, command and control. The 338-ft Spearhead-class EPF is currently providing high-speed, high-payload transport capability to fleet and combatant commanders.
Perciavalle believes that the success of Austal is a result of the Austal Alabamian employees. Previously, Perciavalle has raved about the advantages of doing business in the state of Alabama. Austal employs approximately 4,000 Alabamians in the Mobile area, and Perciaville says that the Navy’s $53.4 million award is evidence of their hard work.
“Due to the level of maturity this program has reached, and the efficiency of our material procurement to date, we have earned the Navy’s confidence to make this award,” said Perciavalle. “This is a testament to the hard work of Austal’s awesome employees building incredible ships.”
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RELATED: Everything you need to know about the Alabama House delegation’s ‘cromnibus’ votes
WASHINGTON — The $1.1 trillion “CRomnibus” passed the U.S. Senate Saturday night, concluding an usually active day of of political maneuvering by dissenting senators on both ends of the political spectrum. The bill, which got its name because it combined an omnibus of 11 appropriations bills to fund the government through next September with a continuing resolution (CR) funding the Department of Homeland Security through Feb. 27, passed on a final vote of 56-40.
Both of Alabama’s senators voted against the bill, citing its funding of the president’s executive action on immigration as the primary reason.
“While I support funding the government, as well as several conservative priorities and provisions important to Alabama in the omnibus, I opposed the overall bill,” said Sen. Richard Shelby (R-Ala.). “The omnibus fails to properly address President Obama’s action to grant amnesty to millions of illegal immigrants through executive fiat. I remain firmly opposed to providing amnesty to those who have broken our laws and I stand ready to fight against the President’s executive overreach when Republicans control both the House and the Senate next Congress.”
Shelby was, however, one of the architects of the appropriations portion of the CRomnibus, and noted that while he did not support the full bill, he was pleased to see several items of particular importance to Alabama’s economy included in the legislation.
In addition to the three Alabama-built Littoral Combat Ships that were previously included in President Obama’s budget, the CRomnibus included an additional $80 million, which Shelby said will allow for “long-lead procurement in order to maintain shipyard capacity and cost savings.” The bill also contained $200 million over and above the President’s Budget Request for an additional Alabama-built Joint High Speed Vessel. Both ships are made at the Port of Mobile by Austal USA.
“This bill funds defense-related programs that play a vital role in providing our nation’s military with the resources that they need to strengthen our national security,” said Shelby. “I am pleased that this bill includes funding to enhance Alabama’s national defense capabilities and continue our state’s commitment to serving our armed forces.”
Sessions spent most of the day demanding a vote on language to block funds for the implementation of the President’s “illegal and unconstitutional amnesty.” Although his efforts ultimately fell short on Saturday, his consistent and articulate arguments against the President’s executive actions will continue to impact the debate going into the next sessions of Congress when Republicans will control both the House and Senate.
“Who is looking out for American workers?” an exasperated Sessions rhetorically asked on the Senate floor. “Who is looking out for their interests, fighting to help them get better jobs and pay, working to help their communities climb out of poverty? The immigration debate in our nation’s capital is always centered on the needs of illegal immigrants, foreign workers, or large employers. Isn’t it time, after decades of open immigration, to focus on how we can help Americans?”
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— Cliff Sims (@Cliff_Sims) December 3, 2014
WASHINGTON — House Republican leadership, with the help of a chunk of Democrats, pushed through a $1.1 trillion spending bill on Thursday that will fund the government through next September. The final vote was 219 – 206, as 57 Democrats joined with 162 Republicans to push the bill over the finish line.
According to The Hill, “The so-called ‘cromnibus’ included an omnibus of 11 appropriations bills funding most of the government through September, and a continuing resolution funding the Department of Homeland Security through Feb. 27.”
House Speaker John Boehner said passage of the cromnibus avoided a government shutdown, and also gives Republicans an opportunity to readdress DHS funding in February — a move he says will help them push back against President Obama’s executive actions on immigration.
“(B)y the House’s action, we are setting up a direct challenge to the president’s unilateral actions on immigration next month, when there will be new Republican majorities in both chambers,” he said. “The Senate should act on this bipartisan legislation in short order.”
Alabama’s House delegation, which often splits down Party lines (6 Republicans and 1 Democrat), was split 5-2 on the Cromnibus, with Democrat Terri Sewell joining Republicans Bradley Byrne, Martha Roby, Robert Aderholt and Spencer Bachus in voting in favor of the bill. Republicans Mike Rogers and Mo Brooks voted no.
Yea on #CRomnibus: @RepByrne, @RepMarthaRoby, @Robert_Aderholt, @BachusAL06, @RepTerriSewell. No: @RepMikeRogersAL, @RepMoBrooks #alpolitics
— Cliff Sims (@Cliff_Sims) December 12, 2014
Byrne said he supported the bill because it contained a number of provisions of particular importance to Southwest Alabama, including fully funding three new Littoral Combat Ships and one additional Joint High Speed Vessel, which are built in Mobile.
“From fully funding three Littoral Combat Ships to easing a burdensome regulation on our local farmers, there are many positive reforms included in this bill,” he said. “Additionally, the bill includes no new funding for ObamaCare, slashes the budgets of the EPA and IRS and includes strong 2nd Amendment and pro-life policies.”
Roby said she supported the bill because it funds critical government operations, including appropriating funding for Lakota Helicopters to enhance the aviation training mission at Fort Rucker in the Wiregrass area of Roby’s district. She also said that, in her view, the legislation gives Congress the best opportunity to reverse President Obama’s unilateral immigration actions when Republicans have dual House and Senate majorities in January.
“I support the Appropriations plan for many reasons, including this important one: this plan puts us in the best position possible to address President Obama’s plans for executive amnesty. There is no question about who is for amnesty and who is against it. The question is what is the best strategy for actually reversing the president’s action? This plan wisely allows us to focus on defunding executive amnesty in four weeks when Republicans have a Senate majority and even more votes in the House.”
Brooks, however, vehemently opposed the cromnibus, saying that it “undermines the proper functioning of a Republic.”
Brooks listed several reasons he opposed the bill, including its $1 trillion price tag; the fact that it was 1,600 pages long and did not give members time to fully review it; and that he believes it represents “tacit surrender to the President’s unilateral action (on immigration) and a missed opportunity to stop it.”
.@RepMoBrooks just told me, "Imagine a coach instructing his team to punt on 1st down. That's what House leadership has done" on #CRomnibus.
— Cliff Sims (@Cliff_Sims) December 11, 2014
But it was Sen. Jeff Sessions who was the most vocal in the aftermath of the cromnibus’ passage. Sessions leads a bloc of Senate and House conservatives who believe that failing to block the President’s immigration executive order now will give the Administration the opportunity to begin implementing its plan, making it difficult — or even impossible — for Republicans to roll it back next year.
“For the sake of the Constitution and our constituents, Congress should fund the government but not fund the President’s unlawful amnesty,” Sessions said after the vote. “Unfortunately, not only has Congress so far not attempted any effective action to block the President’s amnesty, but the legislation that passed tonight funds through September of next year many policies that the House itself rejected only a few months ago. In effect, the omnibus provides the Administration with billions of dollars to carry out President Obama’s resettlement plan for illegal immigrants in U.S. communities. The legislation also continues to allow the recipients of the President’s amnesty to receive billions of dollars in government checks in the form of tax credits and to participate in programs through myriad government agencies such as Social Security and Medicare.”
According to Politico, in an effort to secure passage of the cromnibus, lawmakers involved in the negotiations searched for votes by including some of their colleagues’ priorities in the bill.
“The result is a behemoth measure that touches everything from union pensions to defense procurement, resulting in one of the most consequential bills to come before Congress this year,” wrote Politico’s Brian Faler.
He also described Alabama’s senior senator, Richard Shelby, as one of the architects of the plan. Shelby defended the size and scope of the legislation, saying it was not abnormal for an appropriations bill to include funding for a wide variety of programs and departments.
“I don’t think it’s a Christmas tree,” he said. “Appropriations bills always have a lot of things in them because there’s a trillion dollars — how to spend it, how not to spend it.”
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— Cliff Sims (@Cliff_Sims) December 3, 2014
WASHINGTON, D.C. – U.S. Sen. Richard Shelby (R-Ala.), Vice Chairman of the Senate Appropriations Committee, today announced full committee passage of the Fiscal Year 2015 Department of Defense Appropriations bill, which contains funding for ships being built by Austal USA at its Alabama manufacturing facility.
The bill will now go to the full Senate for consideration.
“The Department of Defense Appropriations bill funds defense-related programs that play a vital role in providing our nation’s military with the resources that they need to strengthen our national security,” said Shelby. “I am pleased that this bill includes funding to enhance Alabama’s national defense capabilities and continue our state’s commitment to serving our armed forces.”
The bill fully funds three Littoral Combat Ships (LCS), with an additional $80 million over and above the President’s budget request for advanced funding for a fourth ship.
“LCS is extremely important to our Navy’s ability to maneuver in shallow waters and to combat the threats of surface craft, submarines, and mines,” said Shelby. “In addition to the three LCS provided in the President’s budget, the $80 million in additional funding allows for long-lead procurement in order to maintain shipyard capacity and cost savings. Adequate funding for LCS capabilities is essential to ensuring that our naval fleet is the best in the world and that our armed forces receive the equipment they need in order to execute future operations.”
The bill also appropriates $200 million above the president’s budget request for an eleventh Joint High Speed Vessel (JHSV). Both the Independence-class LCS and JHSV are built at Austal USA in the port of Mobile.
“JHSV is an incredibly flexible vessel that can rapidly and simultaneously transport troops, equipment, and supplies,” said Shelby. “The funding approved by the Committee today provides an additional JHSV, which will support efforts to decrease land-based choke points and maintain unit integrity.”
Sen. Jeff Sessions added that he believes the appropriation is “a strong affirmation of the program in a time of tight budgets.”
“I am very pleased with the work of Senator Shelby and the Senate Appropriations Committee in providing funding for the Littoral Combat Ship,” he said. “This is a great ship and a key part of the Navy’s future. I have advocated for it for many years. We must keep it on-track.”
The Austal plant is located in Alabama’s 1st Congressional District, which is represented by Republican Rep. Bradley Byrne. On Thursday, Byrne applauded the actions of the Senate Appropriations committee and his Alabama colleagues Sen. Shelby.
“Today’s action in the Senate represents one more step in the appropriations process, and a positive development for the LCS program. I appreciate Senator Shelby and the Senate Appropriations Committee for recognizing the value the LCS adds to our Navy’s capabilities.
Byrne previously worked to include language in the National Defense Authorization Act, which passed the House in May, that authorizes construction of four Littoral Combat Ships. The House Defense Appropriations Act only appropriated funding for two ships. The House and Senate will work out the differences in a joint Conference Committee later this year.”
A final Defense Appropriations Act, along with the other eleven appropriation bills, must be passed by the end of the current fiscal year on September 30.
Austal USA currently employs over 4,000 Alabamians. For more on Austal’s Alabama operation, check out Yellowhammer’s Exchange interview with Austal USA President Craig Perciavalle.
Follow Cliff on Twitter @Cliff_Sims
(Above: Yellowhammer News CEO Cliff Sims interviews Austal USA President Craig Perciavalle)
Craig Perciavalle kicked off 2013 by becoming President of Austal USA, America’s largest aluminum shipbuilding company, with roughly 4,000 employees in Mobile, Ala. A little over a year later, he’s leading the company through a period of unprecedented growth and cranking out the most advanced ships the U.S. Navy has ever had in its fleet. Austal is currently building Joint High-Speed Vessels (JHSV) and Littoral Combat Ships (LCS), both of which are so fast that their top speed is classified.
Mr. Perciavalle sat down with Yellowhammer CEO Cliff Sims this week for The Exchange, a regular feature in which Yellowhammer discusses current events and other topics with a state or national business leader or political figure, or notable Alabamian.
RELATED: The Exchange ft. Special Guest Steve Forbes
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Did you know Sen. John McCain, R-Ariz., tried to kill the Littoral Combat Ship, but Sen. Richard Shelby, R-Ala., saved it? Did you know the most advanced ships in the Navy are being run on Microsoft Windows? Find out about that and so much more — including what’s making Alabama so attractive to companies around the world — by watching the video above.
Here are some of the top quotes from this week’s sit-down with Austal USA President Craig Perciavalle.
On what it’s like to operate the Navy’s most advanced ships:
The command infrastructure on the ship is Windows based. It basically looks like you’re looking at your desktop in your office. It’s got all the permissions and all the security features that are necessary to be in a military environment. But at the end of the day, it enables us to upgrade the systems on the ship, or ‘plug-and-play’ other weapons or other mission packages on the ship much more easily than a traditional Navy ship has been able to do in the past.
On working with Alabama’s Congressional delegation:
It’s phenomenal… I’ve been in this position for a little over a year now and the appreciation that I have for what they do has just gone beyond my imagination… They provide a tremendous amount of support for us — both with state support with supporting the operations, as well as support on the Hill.
On an Alabama-built ship making it into a Disney movie that made a half-billion dollars at the box office:
It’s the LCS Independence. It’s Tony Trihull in the Cars 2 Movie. We didn’t know it was going to happen. We had some employees that were sitting in the movie theater and they were like, ‘Holy cow, that’s our ship!’
On what’s making Alabama so attractive to companies right now:
First and foremost is the support the state gives industry here. They realize they need to provide support for companies to have them move to the area and grow the economics of the state. That’s been tremendous for us with AIDT training. We get a lot of support with that. We’ve had some support in the facility growth that we’ve had — both from the county, the City of Mobile and the State of Alabama. That partnership between the State of Alabama and industry is really second to none from what I’ve seen… That’s the main reason why people are attracted to come into the state… That’s just going to make the state of Alabama grow into an incredible economic powerhouse going forward.
On Austal employees rejecting unionization 3 times and Alabama’s status as a right-to-work state:
That’s probably the second leading attractive part of being in the State of Alabama — a right to work state… We focus on treating our employees right and creating a very good work environment for them.
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Rep. Bradley Byrne, R-Mobile, today found out that House Armed Services Committee Chairman Buck McKeon, R-Cal., has appointed him to two subcommittees that are especially important to south Alabama. Byrne will serve on the Seapower and Projection Forces and Tactical Air and Land Forces Subcommittees.
The Seapower and Projection Forces Subcommittee has direct jurisdiction over policy for the U.S. Navy, specifically the Navy contracts represented at the Austal USA facility in the Port of Mobile.
Austal employs roughly 4,000 Alabamians at the facility. Additionally, Huntington Ingalls, located across the state line in Mississippi, employs roughly 1,700 residents of Alabama’s First Congressional District and is a provider of ships for both the U.S. Navy and Coast Guard. BAE Systems, C&G, Horizon, Bomonico, Sikver Ships, Rodriquez, Steiner Shipyard, Signal Ship Repair, Technico, and Master Marine also operate facilities in Alabama’s First District.
“These subcommittee assignments are a victory for our South Alabama workers at Austal and across the state line at Huntington Ingalls,” Byrne said. “From these subcommittees, I will work to protect the job-generating contracts for the cutting-edge Littoral Combat Ship and Joint High Speed Vessel built right here at home in the Port of Mobile. I look forward to working with Chairman McKeon and Subcommittee Chairman Forbes from these important posts.”
In addition to being notified of his Armed Services subcommittee assignments, Byrne announced he has joined the House Shipbuilding Caucus and the House Steel Caucus, two groups that represent closely related industries in south Alabama.
Alabama’s First Congressional District is home to a giant steel facility operated jointly by ArccelorMittal and Nippon Steel and Sumitomo Metal Corp. Other steel industry companies like ThyssenKrupp, Outokumpu Oyj, Berg Pipe, and SSAB also operate in the First District.
Byrne today called those companies “jobs providers for our region and state.”
Shipbuilding Caucus Co-Chairman Rob Wittman, R-Va., welcomed Byrne to their caucus and said it serves as “a critical forum for discussion of shipbuilding issues within Congress.”
“Shipbuilding is a major industry in Alabama’s First Congressional District, representing thousands of jobs and the livelihood of thousands of South Alabama families,” Byrne added. “This is an excellent place for me to craft policies with Members of Congress who share my commitment to jobs and building a naval fighting force for the next century.”
Follow Cliff on Twitter @Cliff_Sims