HII Develops Australian Submarine Supplier Program

HII to Enhance Submarine Supply Chain

Huntington Ingalls Industries Inc (HII), a leading U.S. military shipbuilder and expert in nuclear-powered submarine construction, has recently received a vital contract aimed at bolstering the supply chain for submarines in Australia. This initiative involves the Australian Submarine Supplier Qualification (AUSSQ) pilot program, which will unfold over the next two years, bringing in Australian suppliers to support U.S. submarine manufacturing.

Contract Value and Its Implications

The initial contract value stands at $9.6 million AUD, with provisions for an extension if achievements are met. This contract marks a significant step towards establishing a sovereign and internationally integrated supply chain in Australia, reinforcing the commitment towards the AUKUS trilateral security partnership among Australia, the UK, and the U.S.

Leadership Insights

Chris Kastner, the president and CEO of HII, emphasized the importance of this new venture during a recent announcement. He stated, "This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines. HII has a historical record of collaborating with suppliers to ensure adherence to the highest standards related to safety and performance. We are excited to welcome Australian partners to expand this critical nuclear shipbuilding capability and ensure the success of AUKUS in the long run."

AUSSQ Pilot Program Overview

The AUSSQ pilot program is an essential component of the comprehensive AUKUS Submarine Industry Strategy, outlined by the Australian Submarine Agency. This strategy is designed to create the robust industrial capability necessary for the development and sustainment of future nuclear-powered submarines while ensuring the proficient operation of the existing Collins-class submarines.

Impact on Australia's Defense Industry

Richard Marles, Australia's Deputy Prime Minister and Minister for Defence, laid out the significance of the program, stating that having a capable Australian submarine industrial base is critical for national defense. This initiative is another measured step towards achieving that objective as it fosters direct collaboration between HII Australia and Australian businesses.

Broadening the Supplier Base

The AUSSQ pilot program will actively engage a wide array of Australian companies, building on the success of HII Australia's recent collaborations with the South Australian and Western Australian governments. This integration aligns with the existing Defence Industry Vendor Qualification (DIVQ) Program, further solidifying the establishment of a qualified supplier network.

Expertise in Nuclear Submarine Programs

With over 60 years of experience in managing complex supplier networks for U.S. Navy nuclear submarine programs, HII has cultivated a strong culture of nuclear stewardship. The firm prioritizes quality assurance, safety, and technical training to help the Australian industry meet stringent construction requirements. HII's commitment to science, technology, and environmental protection, along with efforts to develop a skilled workforce through local education and training initiatives, positions the company to boost Australia’s industrial base.

Sustained Investment in Local Suppliers

Annually, HII invests approximately $1 billion across more than 2,000 suppliers in the U.S., with a substantial portion directed towards small businesses. This focus will now extend to Australia, as HII identifies and nurtures local suppliers, offers technical support, and implements best practices tailored to meet the precise specifications necessary for nuclear submarine components.

Collaborative Management and Future Efforts

The management of the program will be handled by HII’s Australian operations, which will leverage both local and international expertise along with a partnership with H&B Defence, a joint venture between HII and Babcock. This collaboration exemplifies HII's dedication to enriching Australia's defense capabilities.

Frequently Asked Questions

What is the AUSSQ pilot program?

The AUSSQ pilot program is an initiative aimed at integrating Australian suppliers into the U.S. submarine industrial base to support the development of nuclear-powered submarines.

How much is the initial contract worth?

The contract has an initial value of $9.6 million AUD with potential for extension based on performance metrics.

How does this program support the AUKUS partnership?

This program strengthens the supply chain for nuclear submarines, which is crucial for the AUKUS partnership involving Australia, the UK, and the U.S.

Who is leading the AUSSQ pilot program?

HII is spearheading the AUSSQ pilot program in collaboration with the Australian government and local suppliers.

What role does HII have in nuclear-powered shipbuilding?

HII has extensive experience in nuclear-powered submarine construction and is committed to enhancing its capabilities by engaging with local Australian businesses.

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