ASC wins destroyer battle

The Australian Federal Government has chosen ASC Shipbuilding as the preferred shipbuilder for the Australian Navy’s air warfare destroyers (AWDs) worth up to A$6 billion ($4.5 billion).

The government made the decision after accepting the unanimous recommendation of the ?source selection board? on the basis that ASC Shipbuilders offered a superior bid in terms of value for money. In addition, the government has granted first pass approval and provided A$455 million towards the next phase of activities including further design work, workforce skilling, initial infrastructure investment and facilities construction.

ASC Shipbuilding, formerly entitled the Australian Submarine Corporation, was chosen through a competitive tender evaluation process that also included Northrop Grumman Ship Systems and Tenix Defence. South Australia’s strong industrial relations record is being credited as a major factor in the decision to award a multi-billion dollar naval ship building contract to ASC.

Bids for the ship design contract from the Blohm + Voss arm of Germany’s ThyssenKrupp, U.S. naval architects Gibbs and Cox and Spain’s Navantia (formerly Izar) were still being considered. ASC?s own evolved design will be further considered in conjunction with an Australianized version of Spain’s existing F100 ship design. This process is expected to be completed later this year.

The construction of the AWDs will be one of the most significant shipbuilding projects undertaken in Australia to date, and will provide enormous opportunities for Australian industry. More than 1,000 direct jobs will be created in South Australia as part of the build contract although up to 70% of the module construction will be sub-contracted to other shipyards around Australia creating around 1,000 additional jobs throughout the country, while the project and also opens up important flow-on benefits for key sub-contractors throughout Australia.

The newbuildings, which are to be introduced into service from 2013, will be equipped with the world-class AEGIS Combat System that is capable of detecting and defeating multiple hostile aircraft and missiles at ranges in excess of 150 kilometers. The AWDs will also have an anti-submarine and anti-surface warfare capability, as well as the ability to embark a helicopter at sea.