The Navy is planning to combine the competition for the detailed design and construction contracts for the LHA-8 amphibious assault ship, fleet replacement oilers and the early design work for a new class of amphibious (LX(R)) dock ships and will allow only two shipyards into the bidding process.
The Navy earlier this month issued a notice of the planned competition. The service’s acquisition chief, Sean Stackley, is expected to outline the plan during testimony before the House Armed Services Committee’s seapower panel on Wednesday.
The competition will involve Huntington Ingalls Industries [HII] shipbuilding yard in Pascagoula, Miss., and General Dynamics NASSCO yard in San Diego, Calif.
The Navy plans to ask the two shipbuilders to submit combined bids for the detailed design and construction work on the LHA-8 and for the first six of 17 planned T-AO(X) oilers to replace the existing fleet of oilers. The Navy estimates that the work on the much larger and complicated LHA-8 is of equal value to the six oiler auxiliary ships.
Whoever offers the best price will win one or the other, but will also get the bulk of the early design work for the LX(R) amphibious dock ships meant to replace the Whidbey Island and Harpers Ferry class ships currently in the fleet. The one that comes in with the higher bid will win either the LHA-8 or the six T-AO(X)s, but will get much less work on the LX(R).
The Navy said it is setting up the arrangement to drive competition and reduce cost, and noted HII and NASSCO are the only two yards capable of building the ships. By sharing the work, it is also a way to keep the industrial shipbuilding base stable, said Cmdr. Thurraya Kent, a Navy spokeswoman.
“The Navy is pursuing a limited competition procurement approach to obtain the lowest price for the procurement of the amphibious assault ship (LHA 8) detail design and construction (DD&C) for the first six Fleet Oiler Replacement (T-AO(X)) and contract design support for the LX(R),” she said.
Kent said the Navy is limiting the competition to NASSCO and Ingalls Shipbuilding because they are the only two yards that can engineer and build large deck amphibious assault ships and auxiliary ships in the period of time required.
“This approach balances the Navy’s commitment to maintaining a viable shipbuilding industrial base while aggressively pursuing competition,” she said.
The early design work on the LX(R) does not commit the Navy to either yard for the eventual construction of the ships.
The Navy’s budget proposal released earlier this month calls for funding the construction of the first TAO(X) in fiscal 2016, which begins Oct. 1, followed by one each in fiscals 2018-2020. Construction is set to begin on the LHA-8 in 2017, according to the budget proposal. The first of the LX(R)s is scheduled for 2020.