HII awarded $9.6 million contract to enhance Australian submarine supply chain for AUKUS partnership over two years.
Quiver AI Summary
HII, the largest military shipbuilder in the U.S., has been awarded a $9.6 million contract to implement the Australian Submarine Supplier Qualification (AUSSQ) pilot program over the next two years. This initiative aims to enhance the identification and qualification of Australian suppliers for the U.S. submarine industrial base, supporting the AUKUS security partnership among Australia, the UK, and the U.S. HII's president emphasized the significance of building a resilient supply chain for nuclear-powered submarines, while the Australian Deputy Prime Minister highlighted the importance of an Australian industrial base for national defense. The pilot will engage with Australian companies across the nation, building on previous partnerships and focusing on compliance with stringent nuclear construction standards, ultimately establishing a sustainable pipeline of qualified suppliers.
Potential Positives
- HII was awarded a significant contract valued at $9.6 million (AUD) to lead the AUSSQ pilot program, demonstrating the company's role in strengthening international supply chains for nuclear-powered submarines.
- The program aims to enhance the integration of Australian suppliers into the U.S. submarine industrial base, which can lead to increased business opportunities and partnerships for HII.
- This initiative aligns with the AUKUS trilateral security partnership, potentially reinforcing HII's strategic position within multi-national defense collaborations.
- HII's extensive experience in managing complex supply chains will support Australian industry in meeting high safety and performance standards, thereby enhancing HII’s reputation as a trusted defense partner.
Potential Negatives
- Significant reliance on Australian suppliers could indicate vulnerabilities in HII's existing supply chain and operational capacity.
- The contract's initial value of $9.6 million may be perceived as modest in relation to the scale of HII's operations, raising questions about the overall profitability of the initiative.
- The focus on external suppliers for critical components might lead to potential quality assurance challenges, impacting project timelines and safety standards.
FAQ
What is the AUSSQ pilot program?
The AUSSQ pilot program aims to qualify Australian suppliers for the U.S. submarine industrial base over the next two years.
How much is the contract value for the AUSSQ program?
The initial value of the AUSSQ contract is $9.6 million AUD, with options for extension based on performance.
What role does HII play in the AUKUS partnership?
HII is significantly enhancing the submarine supply chain, supporting Australia’s capabilities within the AUKUS trilateral security partnership.
How will Australian suppliers be involved in the AUSSQ program?
The program will engage Australian suppliers directly, helping them qualify and prepare for tendering in U.S. submarine projects.
What is HII's experience in submarine construction?
HII has over 60 years of experience in U.S. Navy nuclear-powered submarine programs, emphasizing quality assurance and nuclear stewardship.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
CANBERRA, Australia, March 11, 2025 (GLOBE NEWSWIRE) -- HII (NYSE: HII), the largest military shipbuilder in the United States and a global leader in nuclear-powered submarine construction, was awarded a contract to deliver the new Australian Submarine Supplier Qualification (AUSSQ) pilot program over the next two years to accelerate the identification and qualification of Australian suppliers and products into the United States submarine industrial base.
The contract’s initial value is $9.6 million (AUD) with the option to extend based on achievement.
The pilot program will support the development of a sovereign robust, internationally integrated supply chain, accelerating Australian industry’s critical contribution to the success of the AUKUS trilateral security partnership between Australia, the United Kingdom, and the United States.
“This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines,” said Chris Kastner, president and CEO of HII. “HII has a long history of working with suppliers to ensure they meet the highest standards in safety, security, and performance. We welcome Australian partners to help build out this critical nuclear shipbuilding capability and ensure the long-term success of AUKUS.”
A photo accompanying this release is available at:
http://hii.com/news/hii-to-strengthen-nuclear-powered-submarine-supply-chain/
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The HII led AUSSQ pilot program is part of the Australian Government’s comprehensive “AUKUS Submarine Industry Strategy,” released by the Australian Submarine Agency on March 5, 2025. The Industry Strategy “identifies the conditions to develop the sovereign industrial capability needed to deliver, operate and sustain our future conventionally-armed, nuclear-powered submarines, while also ensuring our existing
Collins
-class submarines are sustained and upgraded until their eventual withdrawal from service.”
The AUKUS Submarine Industry Strategy states, “The [AUSSQ Pilot program] will use a B2B model, enabling HII Australia to work directly with Australian businesses to qualify both the businesses and their products, and subsequently assist them to tender for supply into the US programs.”
“An Australian submarine industrial base capable of building and sustaining a persistent, potent and sovereign multi-class submarine capability is vital to the defense of Australia, and this Pilot initiative with HII Australia is another important step to this being achieved,” stated Richard Marles, deputy prime minister of Australia and Australia minister for Defence.
The AUSSQ pilot program will engage with Australian companies nationwide, building on the success of the recent partnership of HII Australia with both the South Australian Government and the Western Australian government, and complements the Australian government’s existing Defence Industry Vendor Qualification (DIVQ) Program.
With over 60 years of experience managing complex supplier networks for U.S. Navy nuclear-powered submarine programs and maintaining a strong nuclear stewardship culture for the U.S. Department of Energy (DOE) on critical national security projects, HII’s expertise in quality assurance, safety, and technical training will support Australian industry in meeting the stringent requirements for nuclear-powered submarine construction. The company also brings a record of advancing science, technology, and environmental protection, as well as proven performance in developing and sustaining a highly skilled nuclear workforce, including by investing in education and training programs that attract, develop, and retain top talent in local communities. By leveraging this extensive experience, HII is prepared to support Australia’s efforts to build and sustain a robust industrial base capable of supporting these highly sophisticated vessels.
Every year HII spends approximately $1 billion with more than 2,000 suppliers in the United States, with nearly half of this amount going to small businesses.
HII’s engagement will focus on assessing and developing Australian suppliers, providing technical guidance, and implementing best practices to ensure compliance with the precise specifications required for nuclear submarine components. By leveraging HII’s deep experience in supply chain management and industrial base expansion, the program aims to establish a sustainable pipeline of qualified suppliers, reinforcing the broader AUKUS effort. This contract works in conjunction with our Global Supply Chain Program’s broader Australian supplier initiatives.
The contract will be managed by HII’s Australian operations leveraging the company’s local and international strengths and skills delivered, and in partnership with H&B Defence – a HII and Babcock joint venture.
For more information about HII’s role in nuclear-powered shipbuilding and supplier development, visit
https://hii.com/what-we-do/sectors/hii-australia
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About HII
HII is a global, all-domain defense provider. HII’s mission is to deliver the world’s most powerful ships and all-domain solutions in service of the nation, creating the advantage for our customers to protect peace and freedom around the world.
As the nation’s largest military shipbuilder, and with a more than 135-year history of advancing U.S. national security, HII delivers critical capabilities extending from ships to unmanned systems, cyber, ISR, AI/ML and synthetic training. Headquartered in Virginia, HII’s workforce is 44,000 strong. For more information, visit:
HII on the web:
https://www.HII.com/
HII on Facebook:
https://www.facebook.com/TeamHII
HII on X:
https://www.twitter.com/WeAreHII
HII on Instagram:
https://www.instagram.com/WeAreHII
Contact:
Greg McCarthy
(202) 264-7126
gregory.j.mccarthy@hii-co.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/eb59ae74-c8ea-4a9f-81b9-8b51599a4999
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
