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May 27, 2020 | International, Naval

Bath Shipyard Scrambles As Thousands Retire; Months Behind On Destroyer Work, Says President

“Last year we hired 1,800 people, which was the most hired for 30 years I think,” BIW President Dirk Lesko said. "We probably would have hired 500 or 600 more people last year if we could have.”

By on May 26, 2020 at 5:22 PM

WASHINGTON: A round of highly-anticipated talks between Maine's Bath Iron Works shipyard and the local labor union representing many of the company's 6,800 employees kicked off this morning, with both sides hoping to keep one of the nation's most important shipyards humming.

The labor negotiations could have a major impact on delivery of Arleigh Burke destroyers to the Navy, which BIW President Dirk Lesko told me are already running six months behind schedule even as he scrambles to hire several thousand new workers.

“Last year we hired 1,800 people, which was the most hired for 30 years I think,” Lesko said. “The challenge that we have is that, at least prior to COVID-19, the economy was very good, and there's much less of a manufacturing sector to draw people from here than in other parts of the US. We probably would have hired 500 or 600 more people last year if we could have.”

Some 1,800 new employees are being trained up to replace hundreds of older tradesmen who retired over the past several years after being hired during the last shipbuilding binge in the 1980s. Training the new group has taken time, and slowed some projects down. “Those people are leaving in groups, requiring us to replace them in big groups,” Lesko said.

The talks come after attendance rates at the shipyard dipped by more than half in the early days of the COVID-19 crisis, Workers stayed home due to local closures and the union pushed back over the use of non-union subcontractors. At one point in late March, only 41 percent of workers showed up for their shifts; by the end of April, only about 45 percent of Local S6 union members had clocked in over the previous month.

The delays in work on the destroyers came well before COVID-19 however, and stemmed from a variety of issues: the aging workforce, the time it takes to train skilled workers, and the lingering effects of the delayed work on the Navy's troubled DDG-1000 Zumwalt destroyers, which is years behind schedule and has eaten up a good portion of the limited pier space at Bath.

Lesko said the workers on the Zumwalt will turn back to their Arleigh Burke work later this year, freeing up labor and space at the pier to begin eating away at those delay times.

But the low attendance rates at the shipyard, demands for pay increases, and company's use of some non-union subcontractors for some work are major points of contention between the company and the union.

Last week, union leadership posted this on their Facebook page, “it is disheartening that, the very week our membership returns to work as normal after being encouraged to stay out and stay safe due to COVID-19 they are rewarded by subbing out their work. Claiming there were so many people out of work they are now further behind schedule.”

Those issues will begin to be hashed out this week as the two sides look to get production of the Navy's workhorse destroyers back on track. Lesko told me the schedule slippages occurred before the COVID personnel shortages, but certainly haven't made up time with so many skilled workers staying home.

The company currently has 11 Arleigh Burkes under contract with six under construction, ships that will be a critical part of the Navy's long and troubled effort to build a 355-ship fleet by the end of the decade.

“They're in a tough position going into the labor negotiations because the unions will say ‘you can't afford a strike so you'll need to pay,'” naval analyst Bryan Clark of the Hudson Institute said. But any extra costs to the company would incur could make the costs to the Navy also go up. “That could make it harder for Bath to compete” for any future destroyer work, Clark said.

The company had plans to hire another thousand workers this year before the COVID disruption, which stopped the hiring process. “We had a strong pipeline of people in our training programs in place, and our facilities were coming together in a way that I felt pretty confident about,” Lesko said. He added the company plans to get back to that as soon as possible.

While the new workers are being trained and are making their way to the waterfront, the company has dealt with a few stinging defeats.

The loss of the $795 million contract to build the first 10 of a new class of guided missile frigates for the Navy to Wisconsin-based Fincantieri Marinette Marine was a major blow to Bath, as the company looks to life after destroyer work runs out in the coming years. The company also lost out on a hard-fought effort to build the Coast Guard's Offshore Patrol Cutters in 2016.

Lesko said the company will be in the running for the possibility of a recompete for the frigate contract after the first 10 ships are built, which would put another 10 ships up for grabs. He also expressed hope in talk coming from the Navy that it might be in the market for a new class of large surface combatants in the coming years, but those plans have yet to be fleshed out.

Much of the Navy's future plans remain in limbo until Defense Secretary Mark Esper finishes his review of the Navy's force structure plans some time late this summer, which will guide the Navy's shipbuilding blueprint for the coming decades. Given the outcome of the November presidential election and knock-on effects of the ballooning federal deficit, however, those plans could change again next year as priorities, and budgets, change.

These uncertainties are deeply worrying for the Navy and the Pentagon leadership, as they can ill-afford to lose a shipyard at a time when ship construction and repair are already stressed after years of budget cuts and reduced building rates. The Navy has ambitious plans for a new class of Columbia nuclear-powered submarines, modernizing Virginia-class subs, finishing up the Ford-class aircraft carriers and starting work on the new frigate program. There is also talk of building new classes of smaller amphibious ships and supply vessels to help the Marines in their own transformation efforts. This will take multiple shipyards working on multiple projects at once.

In the near-term, there's widespread concern over how shipyards are dealing with local manufacturing shutdowns as a result of the COVID-19 crisis.

Navy acquisition chief James Geurts told reporters last week that the Navy has seen around 250 suppliers close due to the pandemic in the past two months, but he's “seeing many more of those open than close,” in recent days.

His office is tracking 10,000 companies and suppliers, and of those 250, all but 35 are open now, he said. “While we haven't seen major impacts to current work yet on most of our shipbuilding programs, we are keeping a very close eye on downstream work to make sure that [if] a part we were expecting in September doesn't show up, we understand how to adjust to that,” he said.

Lesko said that he hasn't seen much disruption at his shipyard. “There have been modest levels of disruption, a relatively small number of suppliers” that have temporarily shuttered, he said. “We've been able to work through all of that with our existing supplier base. I would not want to leave you with the impression that I don't think the supply base in some cases is fragile, but at least at this point, they have been able to support us and have done quite well.”

https://breakingdefense.com/2020/05/bath-shipyard-scrambles-as-thousands-retire-months-behind-on-destroyer-work-says-president/

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  • Contract Awards by US Department of Defense - December 10, 2018

    December 14, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - December 10, 2018

    DEFENSE LOGISTICS AGENCY Caterpillar Inc., Peoria, Illinois, has been awarded a maximum $118,172,545 fixed-price with economic-price-adjustment contract for commercial portable power equipment. Other contracts are expected to be awarded under this solicitation (SPE8EC-17-R-0010), and awardees will compete for a portion of the maximum dollar value. This was a competitive acquisition with seven offers received. This is a five-year contract with no option periods. Locations of performance are Indiana, Texas and the United Kingdom, with a Dec. 9, 2023, performance completion date. Using customers are Army Navy Air Force Marine Corps, and federal civilian agencies. Type of appropriation is fiscal 2019 through 2024 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE8EC-19-D-0034). Honeywell International Inc., Tempe, Arizona, has been awarded a maximum $11,137,310 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for modulating valves. This was a sole source acquisition using justification 10 U.S. Code. 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. This is a five-year contract with no options periods. Location of performance is Arizona, with a Nov. 30, 2023, performance completion date. Using military service is Army. Type of appropriation is fiscal 2019 through 2023 Army working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Redstone Arsenal, Alabama (SPRRA1-19-D-0035). (Awarded Dec. 6, 2018) The Boeing Co., St. Louis, Missouri, has been awarded a $7,957,022 cost-plus-fixed-fee delivery order (SPRPA1-19-F-0003), against a three-year, six-month contract (SPRPA1-14-D-002U), with no option periods for F-15 parts and engineering. This was a sole-source acquisition using justification 10 U.S. Code. 2304 (c)(1), as stated in Federal Acquisition Regulation 6.302-1. Location of performance is Missouri, with a May 18, 2022, performance completion date. Using military service is Air Force. Type of appropriation is fiscal 2019 through 2022 Defense working capital funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. (Awarded Dec. 6, 2018) NAVY CH2M Hill Constructors Inc., Englewood, Colorado (N62470-13-D-6019); Environmental Chemical Corp., Burlingame, California (N62470-13-D-6020); Kellogg, Brown & Root Services Inc., Arlington, Virginia (N62470-13-D-6021); URS Group Inc., Morrisville, North Carolina (N62470-13-D-6022), are awarded an $86,000,000 modification to increase the maximum dollar value of an indefinite-delivery/indefinite-quantity, multiple award contract for global contingency construction projects worldwide. The construction and related engineering services would respond to natural disasters humanitarian assistance conflict, or projects with similar characteristics. Work will be predominately construction. The contractor, in support of the construction effort, may be required to provide initial base operating support services, which will be incidental to construction efforts. After award of this modification, the total cumulative contract value will be $886,000,000. Work will be performed worldwide and the term of the contract is not to exceed 68 months with an expected completion date of February 2019. No funds will be obligated at time of award, funds will be obligated on individual task orders as they are issued. The Naval Facilities Engineering Command, Atlantic, Norfolk, Virginia, is the contracting activity. PAE Applied Technologies LLC, Fort Worth, Texas, is awarded $72,000,552 for modification P00074 to a previously awarded cost-plus-fixed-fee contract (N00421-14-C-0038), to exercise an option for range engineering, operations and maintenance services in support of the Naval Air Warfare Center Aircraft Division, Atlantic Test Range, and the Atlantic Targets and Marine Operations Division. Services to be provided include system operations; laboratory and field testing; marine operations and target support; engineering; range sustainability; maintenance, data reduction, and analysis. Work will be performed in Patuxent River, Maryland, and is expected to be completed in December 2019. Fiscal 2019 working capital fund (Defense and Navy); and Major Range and Test Facility Base funds in the amount of $35,209,082 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Warfare Center Aircraft Division, Patuxent River, Maryland, is the contracting activity. BAE Systems Hawaii Shipyards Inc., Honolulu, Hawaii, was awarded a $50,605,368 cost-plus-award-fee, cost-plus-incentive-fee contract modification to previously awarded contract (N00024-14-C-4412), for scheduled Extended Docking Selected Restricted Availability (EDSRA) on USS Hopper (DDG-70). The ship is homeported in Honolulu, Hawaii. The scheduled EDSRA is the opportunity in the ship's life cycle primarily to conduct repair and alteration to systems that will update and improve the ship's military and technical capabilities. This repair modification will include repair and alteration requirements. A focal point of the work is to support alteration installation team modernization packages. Work will be performed at Pearl Harbor, Hawaii, and is expected to be completed by July 2020. Fiscal 2019 operations and maintenance (Navy); and fiscal 2018 other procurement (Navy) funding in the amount of $25,302,684 will be obligated at time of award and funding in the amount of $25,138,776 will expire at the end of the current fiscal year. The Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility, Pearl Harbor, Hawaii, is the contracting activity. (Awarded Dec. 3, 2018) Northrop Grumman Systems Corp., Aerospace Systems, Melbourne, Florida, is awarded $49,885,708 for firm-fixed-price modification P00004 to a previously awarded advance acquisition contract (N00019-18-C-1037), for long-lead parts and associated support for the full rate production of two Lot 7 E-2D Advanced Hawkeye aircraft. Work will be performed in Syracuse, New York (29 percent); El Segundo, California (29 percent); Melbourne, Florida (14 percent); Rolling Meadows, Illinois (7 percent); Menlo Park, California (6 percent); Greenlawn, New York (4 percent); Owego, New York (2 percent); Indianapolis, Indiana (2 percent); Edgewood, New York (2 percent); Woodland Hills, California (2 percent); Marlborough, Massachusetts (1 percent); Independence, Ohio (1 percent); and various locations within the continental U.S. (1 percent), and is expected to be completed in December 2023. Fiscal 2019 aircraft procurement (Navy) funds in the amount of $49,885,708 will be obligated at time of award, none of which will expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity. Bechtel Plant Machinery Inc., Monroeville, Pennsylvania, is awarded a $44,665,555 cost-plus-fixed-fee contract modification to previously awarded contract (N00024-16-C-2106) for Naval nuclear propulsion components. This contract modification includes options which, if exercised, would bring the cumulative value of this contract to $139,923,083. Work will be performed in Monroeville, Pennsylvania (94 percent); and Schenectady, New York (6 percent). No completion date or additional information is provided on Naval nuclear propulsion program contracts. Fiscal 2019 shipbuilding and conversion (Navy) funding in the amount of $44,665,555 will be obligated at time of award and funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Northrop Grumman, Sykesville, Maryland, is awarded a $35,143,328 five-year, firm-fixed requirements, long-term contract for the repair of nine items of the aircraft launch and recovery equipment systems under the Advanced Recovery Control system. Work will be performed in Sykesville, Maryland, and work is expected to be completed by December 2023. Working capital funds (Navy) will be obligated as individual task orders are issued and funds will not expire at the end of the current fiscal year. This contract was a sole-source pursuant to the authority set forth in 10 U.S. Code. 2304(C)(1) and Federal Acquisition Regulation 6.302-1, with one offer received. Naval Supply Systems Command Weapon Systems Support, Philadelphia, Pennsylvania, is the contracting activity (N00383-19-D-PY01). Raytheon Co., Integrated Defense Systems, San Diego, California, is awarded a $21,327,364 cost-plus-incentive-fee contract modification for contract (N00024-14-C-5128) for continued platform systems engineering agent support of the ship elf defense system MK 2. Work will be performed in San Diego, California and is expected to be completed by June 2019. Fiscal 2019 research, development, test, and evaluation (Navy); fiscal 2019 other procurement (Navy); fiscal 2019 operations and maintenance (Navy); and fiscal 2014 shipbuilding and conversion (Navy) funding in the amount of $21,327,364 will be obligated at the time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity. Aretè Associates Inc.,* Northridge, California, is awarded a $17,083,516 modification to a previously awarded indefinite-delivery/indefinite-quantity contract (N61331-18-D-0012) to exercise an option for coastal battlefield reconnaissance and analysis (COBRA) systems. Work will be performed in Tucson, Arizona (35 percent); Destin, Florida (35 percent); and Santa Rosa, California (30 percent), and is expected to be completed by July 2021. No funding will be obligated at the time of award. Funds will be obligated as delivery orders are issued. The Naval Surface Warfare Center Panama City Division, Panama City, Florida, is the contracting activity. Jacobs Government Services Co., Arlington, Virginia, is awarded $15,000,000 firm-fixed-price modification under a previously awarded indefinite-quantity architect-engineering contract (N40080-17-D-0018), to exercise Option Two for engineering and design services for industrial and research facilities within the Naval Facilities Engineering Command. The total contract amount after exercise of this option will be $75,000,000. No task orders are being issued at this time. Work will be performed at various administrative facilities within the Naval Facilities Engineering Command, Washington area of responsibility, including but not limited to, Maryland (45 percent); Washington, District of Columbia (30 percent); Virginia (20 percent), and may also be performed in the remainder of the U.S. (5 percent). Work for this options is expected to be completed December 2019. No funds will be obligated at time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by fiscal 2019 operations and maintenance (Navy and Marine Corps); and fiscal 2019 Navy working capital funds. The Naval Facilities Engineering Command, Washington, Washington, District of Columbia, is the contracting activity. AIR FORCE Florida Turbine Technologies Inc., Jupiter, Florida, has been awarded a not-to-exceed $50,000,000 indefinite-delivery/indefinite-quantity contract for Advanced Turbine Technologies for Affordable Mission (ATTAM)- capability Phase I. The mission of the ATTAM Phase I program is to develop, demonstrate, and transition advanced turbine propulsion, power and thermal technologies that provides improvement in affordable mission capability. Work will be performed in Jupiter, Florida, and is expected to be completed by December 2026. This award is the result of a competitive acquisition and 54 offers were received. No specific funds are obligated on the basic IDIQ, although in conjunction with the basic IDIQ award, the first task order, a cost-share task order, is fully funded with fiscal 2018 research, development, test and evaluation funds in the amount of $8,000, and fiscal 2019 research, development, test and evaluation funds in the amount of $99,714 at time of award. Air Force Research Laboratory, Wright-Patterson Air Force Base, Dayton, Ohio, is the contracting activity (contract FA8650-19-D-2056 and initial task order FA8650-19-F-2086). ARMY Harris Corp., Palm Bay, Florida, was awarded a $34,606,257 cost, firm-fixed-price contract for procurement of FliteScene digital map software licenses maintenance agreements software support upgrades and releases engineering services materials, and travel. One bid was solicited with one bid received. Work locations and funding will be determined with each order, with an estimated completion date of June 30, 2023. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity (W58RGZ-19-D-0011). Pavement Technical Solutions Inc.,* Ashburn, Virginia (W9128F-19-D-0024); and RDM International Inc.,* Chantilly, Virginia (W9128F-19-D-0025); Applied Pavement Technology Inc.,* Urbana, Illinois (W9128F-19-D-0026), and All About Pavements Inc.,* Purcellville, Virginia (W9128F-19-D-0027), will share in a $20,000,000 firm-fixed-price contract for management system implementation on roads, parking areas and airfields and updating, testing, and maintenance. Nine bids were solicited with four bids received. Work locations and funding will be determined with each order, with an estimated completion date of Dec. 9, 2023. U.S. Army Corps of Engineers, Omaha, Nebraska, is the contracting activity. *Small business https://dod.defense.gov/News/Contracts/Contract-View/Article/1709400/

  • US unveils $425 mln in arms for Kyiv, including anti-drone rockets | Reuters

    November 5, 2023 | International, Aerospace

    US unveils $425 mln in arms for Kyiv, including anti-drone rockets | Reuters

    The United States will provide $425 million worth of additional arms and equipment to Ukraine for its ongoing fight against Russia's invasion, the Biden administration announced on Friday.

  • Despite Hard Times, The F-35 Program Demonstrated Stellar Performance In 2020

    January 18, 2021 | International, Aerospace

    Despite Hard Times, The F-35 Program Demonstrated Stellar Performance In 2020

    By Dan Gouré In a year where the Department of Defense struggled to address a global pandemic, uncertainty at home, and multiple security challenges abroad, the F-35 program stands out as a success story. The aircraft continues to provide exceptional capability for three U.S. Armed Services and more than a dozen foreign operators. In the face of COVID-19 slamming their supply chains on the home front, the F-35 industrial team still managed to produce a near-record 123 fighters. 2020 also saw the roll-out of the first version of the Operational Data Integrated Network (ODIN), the new logistics support program. This is a remarkable record for any large, complex defense program in normal times, much less while struggling to deal with the human and economic toll caused by a global pandemic. COVID-19 has brought heartache and death to this country. It has also disrupted the operations of businesses large and small. The Department of Defense (DoD) has struggled along with every other organization to protect its people while conducting the necessary business of defending the nation, maintaining force readiness and ensuring the continuation of modernization efforts. In addition, the U.S. military deployed to support state and local governments with their pandemic responses and even helped with the development of COVID vaccines. The defense and aerospace industry also responded to the challenges posed by the virus. Protection of its workforce was and remains the number one priority. At the same time, industry knew that it had to continue to make progress on programs and plans to equip the military. An example of how well DoD and the defense industry has coped with the ravages of the pandemic is the Lockheed Martin F-35 program. For example, the pre-COVID plan called for producing 141 F-35s in 2020. This was revised downward in May to between 117 and 123, as DoD planners and industry saw what was happening. The Lockheed Martin team was proactive in changing its production plans and cleaning methods to protect workers. Nevertheless, the program reached its new goal, delivering 123 aircraft, including nearly 50 to foreign partners and countries using the Foreign Military Sales system. 2020 also saw the delivery of the 500th F-35 and the completion of more than 250,000 flight hours across the global fleet. The cost for the F-35 continues to decline, with the price for the benchmark F-35A projected to drop to under 80 million dollars by 2021. According to industry sources, the F-35's reliability continues to improve. The newest production aircraft average greater than 70% mission capable rates, and some are consistently near 75%. Last year saw F-35s from all three Services participate in numerous exercises and training events. One of the most noteworthy of these was Project Convergence, an Army Futures Command program designed to help develop an artificial intelligence and machine learning-based battle management system to direct a host of new weapons systems, such as the Extended Range Cannon Artillery. In a major exercise, the ability to conduct fire missions based on sensor data from Marine Corps F-35Bs passed to Army long-range artillery was demonstrated. Having declared the carrier-variant of the F-35 — the C model — fully operational, the Navy and Marine Corps spent 2020 getting ready to deploy it aboard U.S. aircraft carriers. Together with deployments of advanced versions of the Boeing F/A-18E/F, the Northrop Grumman E-2D Hawkeye, the Bell Boeing CMV-22B Osprey, and the new Boeing MQ-25 aerial refueling drone, the F-35C will transform the carrier air wing. Despite limitations imposed on close contact because of the pandemic, countries acquiring the F-35 continued to induct aircraft, stand up units and conduct training missions during 2020. In July, Italian Air Force F-35s returning home from an air policing mission in Iceland stopped in the United Kingdom to train alongside Royal Air Force F-35Bs. The U.S. has also participated with many partner countries and overseas allies in training exercises with the F-35. Last October, the Israeli Air Force and U.S. Air Force conducted a joint exercise in Israeli skies. Defying COVID, the United Kingdom sent its newest aircraft carrier, the Queen Elizabeth, to sea for a pre-deployment exercise in late 2020. Not only did the Queen Elizabeth demonstrate its ability to operate the short-takeoff and landing variant of the F-35, the F-35B, it also hosted a squadron of U.S. Marine Corp F-35s in a clear demonstration of how the F-35 enhances interoperability with allies. In 2020, more countries also entered the Joint Strike Fighter community. In a landmark agreement, the United States will sell the United Arab Emirates up to 50 F-35s, along with advanced unmanned aerial systems and air-delivered munitions. An agreement between Warsaw and Washington for Poland to acquire 32 F-35s was signed in early 2020. Given the impacts of COVID on virtually all the Department of Defense's activities, it would be surprising if there were no problems with the F-35 program. One such virus-related impact was the need to delay a decision on full-rate production, previously planned for March 2021 to a later date. This was not due to problems with the F-35 itself, production lines, or deployment of software. Rather, it reflected problems in operational test and evaluation, as the need for social distancing made it difficult to complete a number of required test and evaluation activities. In addition, the pandemic forced delays in completion of the Joint Simulation Environment (JSE), an extremely sophisticated virtual testing regime being built to assess the performance of advanced aircraft, particularly the F-35. According to the Office of the Secretary of Defense, a combination of technical challenges and the impact of COVID‐19 was delaying the maturation of the JSE. This will prevent the completion of F‐35 Block 3F software's Initial Operational Test & Evaluation by the original target date of March 2021. 2020 proved the resilience of the U.S military and the defense and aerospace, industrial base. Despite the COVID-19-created delay in fielding the JSE and conducting the full operation test and evaluation program, F-35s continues to roll off the production line, enter service and perform extraordinarily well in exercises and on operational deployments. All in all, 2020 can be recorded as a remarkable success for the F-35 program. https://www.realcleardefense.com/articles/2021/01/16/despite_hard_times_the_f-35_program_demonstrated_stellar_performance_in_2020_656776.html

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