US Navy awards multi-ship procurement contracts totalling US$9 billion

The US Navy has awarded contracts totaling US$9.47 billion for procurement of one America-class amphibious assault ship (LHA) and three San Antonio-class amphibious transport docks (LPD) on Tuesday, September 24.

The award, executed across two separate contracts to Huntington Ingalls Industries' Ingalls Shipbuilding division, utilised a multi-ship procurement approach. By using this strategy, as authorised by Congress, the navy expects to achieve more than US$901 million in cost avoidance as compared to the use of annual contracts.

The long-term contract agreements align with US Secretary of the Navy 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 America-class of amphibious assault ships operate as the centerpiece of Amphibious Ready Group (ARG)/Marine Expeditionary Unit (MEU) operations with accommodation for ship’s company, troops, vehicles, and equipment. The San Antonio-class of amphibious transport dock ships are meanwhile designed to embark, transport, and deploy ground troops and equipment.