U.S Navy Finalizes $9.4 Billion Deal for Four New Amphibious Warships

WASHINGTON: The U.S Navy has officially announced a significant contract with HII for the construction of four amphibious warships, marking the culmination of a long-anticipated block buy deal. This agreement is projected to save the Navy up to $901 million compared to purchasing the ships individually.

Navy Secretary Carlos Del Toro emphasized the importance of this acquisition in enhancing the United States' maritime capabilities. “This purchase sends a steady demand signal to our shipbuilding industrial base that our Navy is actively investing in our shipbuilding infrastructure,” Del Toro said.

The contract, valued at $9.4 billion, includes three San Antonio-class amphibious transport docks, scheduled for delivery in fiscal years 2025, 2027, and 2029, and one amphibious assault ship, expected in 2027. The San Antonio-class ships are part of a multi-ship procurement, while the America-class amphibious assault ship is included in a contract modification.

The number of amphibious ships in the Navy fleet has become a critical issue in recent years. Both the Navy and Marine Corps have committed to maintaining a requirement of 31 amphibious ships. Lt. Gen. Eric Austin, the Marine Corps’ top requirements officer, noted that the current fleet consists of 32 vessels, but the new contract will facilitate the retirement of older ships.

Austin said, “It’s not just 31 amphibs. It’s 10 big deck amphibs and 21 LPDs where we think we need to sustain our floor of amphibs.” He highlighted that ship readiness is equally important as the number of vessels available, stating a commitment to enhancing readiness to support forward operations.

In August, Del Toro informed lawmakers that the Navy had reached a deal with HII, which constructs the amphibious ships at Ingalls Shipbuilding in Mississippi. The four new ships will play a vital role in supporting amphibious assaults, special operations, and humanitarian missions.

Under the block buy system, the Navy and industry agree on pricing for multiple ships in advance, leading to cost savings through bulk material orders. Tom Rivers, a senior civilian at Naval Sea Systems Command, explained that the majority of the estimated savings would come from bulk purchasing for the three LPDs.

One of the challenges facing HII's shipyard is the need to increase its labor force to handle potential additional work. Rivers mentioned that the contracts include incentives to help HII recruit and retain skilled workers, essential for the long-term success of shipbuilding.

This contract has been a long time coming, as lawmakers have pushed for a block buy for amphibious ships to meet the urgent needs of the Marine Corps. Kari Wilkinson, president of Ingalls Shipbuilding, expressed gratitude for the stability this contract brings to shipbuilders and their communities, reaffirming their commitment to supporting the Navy and Marine Corps mission.

So far, Ingalls has successfully delivered 13 San Antonio-class ships and 15 large-deck amphibious ships.

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