Scanlon Secures $630M Contract for Philly Shipyard

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PHILADELPHIA, April 8, 2020 | Gabby Richards | comments

PHILADELPHIA, PA --  Today, Congresswoman Mary Gay Scanlon successfully secured a $630M contract for the Philly Shipyard which will bring nearly 1,200 jobs back to the region.

This effort, led by Congresswoman Scanlon, has been a year-long effort of negotiations and advocacy with senior leadership at the Department of Transportation (DOT), including Secretary Elaine Chao and Rear Admiral Mark H. Buzby, and members of the Administration. Congresswoman Scanlon has worked in lockstep with local labor leaders and Philly Shipyard management to push this initiative forward. 

“At a time when the Philadelphia region can use some good news, I am thrilled that the Philly Shipyard has been chosen by TOTE to build the new National Security Multi-Mission vessels,” said Congresswoman Scanlon. “Philadelphia has been home to our nation’s shipbuilding for more than two centuries, and there is not a better and more capable workforce anywhere else in the country. This contract is a testament to the experience and expertise that the men and women who work at the Philadelphia Shipyard demonstrate on a daily basis, and an investment in Philadelphia's workforce.”

Under this contract, the Philly Shipyard will build a fleet of  U.S. Maritime Administration (MARAD) National Security Multi-Mission Vessels. This contract is valued at approximately $630 million and supports non-recurring engineering and detail design of the NSMV class as well as procurement of equipment and materials and construction of the first two ships. If all five ships are ordered and built in series, then the total contract value of the 5ship program would be approximately USD 1.5 billion. 

“I am so excited that this talented workforce will soon be back doing what they do best. I'd like to thank all of those that made this possible,” said Congresswoman Scanlon. “To the officials at MARAD and the Department of Transportation, to Mayor Kenney and my colleagues in the Pennsylvania Congressional delegation, the labor leaders who championed this contract, and the management of the Philly Shipyard - you have my sincere gratitude and appreciation."

The vessels will serve critical national security interests and other important roles, including missions in support of humanitarian assistance and disaster relief throughout the world. To meet this requirement, the vessels will also have roll/on-roll/off and container storage capacity, as well as a helicopter landing pad.

 “On behalf of skilled shipbuilders throughout North America, the Metal Trades Department, AFL-CIO, offers its praise and thanks to a committed collaboration of great Americans that stretched from skilled workers to a persistent shipyard management, and willing, able partners in the White House and halls of Congress that committed to building and promoting our nation’s workers and the shipbuilding industry,” said Jimmy Hart,  President of the Metal Trades Department, AFL-CIO. “We are especially grateful to Congresswoman Scanlon and her team for their support.” 


“Philly Shipyard is honored to be selected by TOTE to build these sophisticated vessels,” said  Steinar Nerbovik, Philly Shipyard President and CEO. “We are thankful for the trust that TOTE has placed in us, and for all of the support we have received over the last year, especially from our unions, and our local and federal stakeholders. Securing this award is a major milestone in our strategy to reposition the yard for government and commercial projects. We look forward to delivering on our promises.”


“In these difficult times this is welcome news that will put over 1000 people back to work with good paying jobs,” said Manny Stamatakis, Chairman of The Philadelphia Shipbuilding Corporation. “We wish to thank MARAD, and Tote for their confidence in the Philadelphia Yard to undertake this most important assignment.” 


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