The Navy has announced that it has awarded contracts to HII for the construction of four amphibious warships, implementing a block buy deal that has been in development for years. This agreement is expected to save the Navy up to $901 million compared to purchasing the ships individually.
“The importance of this multiple amphibious ship purchase cannot be overstated in relation to our whole-of-government effort to restore the maritime capabilities of the United States,” stated Navy Secretary Carlos Del Toro. “This purchase sends a steady demand signal to our shipbuilding industrial base that our Navy is actively investing in our shipbuilding infrastructure.”
The contracts, valued at $9.4 billion, include three San Antonio-class amphibious transport docks (LPD-33 in fiscal year 2025, LPD-34 in FY27, and LPD-35 in FY29) and one amphibious assault ship, LHA-10, to be delivered in FY27. The San Antonio-class ships are part of a multi-ship procurement contract, while the America-class amphibious assault ship falls under a contract modification.
The Navy and Marine Corps have increasingly recognized the importance of maintaining an adequate number of amphibious ships in the fleet. Both the Commandant of the Marine Corps and the Chief of Naval Operations have endorsed the necessity of reaching a goal of 31 ships. Lt. Gen. Eric Austin, the Marine Corps’ top requirements officer, confirmed that the fleet currently consists of 32 vessels, allowing for the retirement of older ships under this new contract.
“Another key point to emphasize is that it’s not just 31 amphibious ships; we need to maintain 10 large-deck amphibious ships—LHAs—and 21 LPDs to sustain our amphibious force,” he explained. “It’s also about the readiness of these ships, and we are all committed to improving that readiness to support the forward presence demanded by our combatant commanders.”
In August, Secretary Del Toro informed lawmakers that the Navy and HII, which constructs the amphibious ships at Ingalls Shipbuilding in Mississippi, had reached an agreement on this block buy.
The contracts are intended to support various missions, including amphibious assault, special operations, and expeditionary warfare for U.S. Marines, allowing for rapid deployment and support for humanitarian and contingency operations.
Under the block buy arrangement, the Navy and the shipbuilding industry agree on the prices for multiple ships well in advance, leading to savings through bulk material orders. This stability also grants the shipbuilders better scheduling predictability, which they often request from lawmakers and the Defense Department.
Tom Rivers, a senior civilian at Naval Sea Systems Command overseeing shipbuilding programs, noted that the majority of the estimated $901 million savings would come from the bulk purchasing of materials for the three LPDs.
Additionally, Rivers acknowledged that one of the challenges facing HII’s Mississippi shipyard is the ability to ramp up labor in anticipation of more work. He mentioned that today’s contracts include incentives designed to help HII address these labor challenges.
“Labor is a significant issue for all our shipyards right now across the country,” he said. “We included various incentives in the contract to assist Ingalls in hiring new personnel while also aiding in the retention and training of their existing workforce.”
This agreement is seen as a crucial step forward, especially amid persistent calls from lawmakers for a block buy of amphibious ships, reflecting the Marine Corps’ urgent requirement for additional vessels. Kari Wilkinson, president of Ingalls Shipbuilding, expressed gratitude for the stability this award provides to shipbuilders and surrounding communities, echoing a collective commitment to fulfill the minimum requirement of 31 amphibious ships needed for joint Navy and Marine Corps missions.
“We stand ready to reinforce an already strong team of capable shipbuilders with the ideas and skills of new shipbuilders that want to make a difference in the world,” she concluded. “There is no greater sense of accomplishment than doing something difficult in support of our nation’s military.”