Fincantieri Marinette Marine graphic

A graphic of the Constellation-class frigate. (Provided by Fincantieri Marinette Marine)

SEA AIR SPACE 2022: Shipbuilder Fincantieri Marinette Marine “can meet the demand” of the Constellation-class frigate program for the time being, but the Navy still deciding whether to select a second contractor for the 20-ship class, according to the service’s program manager.

Capt. Kevin Smith told attendees at the Sea Air Space exposition on Tuesday that when the time is right, the Navy plans to purchase the ship’s technical data package from Fincantieri and begin to qualify alternate shipyards so that the program office is ready to move forward if senior leadership chooses. A ship’s technical data package is essentially a set of blueprints that the government would need to provide an alternative contractor so they, too, could build the ships.

The Navy took care to ensure its contract with Fincantieri for the Constellation-class included the rights for the government to purchase the technical data package.

At a basic level, the biggest incentive the Navy has to establish a second shipyard is that it increases the number of ships it can produce each year and also adds a level of stability to the supply chain: If production at one shipyard stops for any reason, then the other will still be working.

But the strategy comes with its own costs, especially amid concerns about the program’s maturity. The introduction of a new contractor could complicate the program, and the Navy must also consider whether its future budgets, which most expect to be flat-lining or declining compared to previous years, will be able to support enough work for both shipyards to keep their production lines moving.

Lawmakers’ appetite for a second shipyard are mixed. On one hand, a second yard means more jobs for their constituents — always a positive for those from states that house major shipbuilders such as Austal USA in Alabama or General Dynamics Bath Iron Works in Maine.

On the other hand, language in the fiscal 2022 defense spending bill indicated some on Capitol Hill are apprehensive that establishing a second yard too early could lead to costly mistakes in the future.

“There is concern that prematurely adding a second [frigate] shipyard before the first shipyard has identified and corrected technical and production issues will inject unneeded risk and complexity into the program,” according to a report accompanying the recently signed spending bill.

For now though, Fincantieri, based in Wisconsin, will continue to work with the Navy on solidifying the new ship’s final design, which will go through an important review in the near future, Smith added.