Huntington Ingalls Industries' AMSEC Subsidiary Wins Navy CEMAT and SEMAT Contract


VIRGINIA BEACH, Va., April 7, 2014 (GLOBE NEWSWIRE) -- Huntington Ingalls Industries (NYSE:HII) announced today that its AMSEC subsidiary has been awarded a contract to provide engineering, technical, repair and logistics support to the U.S. Navy's Carrier Engineering Maintenance Assist Team (CEMAT) and Surface Ship Engineering Maintenance Assist Team (SEMAT) programs. The indefinite-delivery/indefinite-quantity, cost-plus-fixed-fee contract contains a one-year base period with four one-year option periods, which, if exercised, would bring the cumulative value of the contract to more than $187 million.

"AMSEC has brought continuity and innovation to the CEMAT and SEMAT programs, and we are delighted to have won this contract," said Harris Leonard, vice president of HII's Newport News Shipbuilding division and president of AMSEC operations. "Being selected by the Navy to continue this support makes us very proud of our past performance and has us looking forward to providing continued support to the fleet."

AMSEC will furnish engineering and technical services in support of maintenance and planning for the overhaul and repair of equipment and systems associated with the Navy's aircraft carriers and West Coast surface ships.

"We are very pleased to continue our CEMAT support to the Navy's aircraft carriers and SEMAT support to its west coast surface ships," said Brad Mason, director of AMSEC's maintenance, modernization and technical services operation. "Our technicians are part of the valuable 'find-fix-and-train' philosophy the program has provided for almost 30 years. As the Navy faces both budget and size restrictions, AMSEC is proud to be part of this maintenance philosophy while providing valuable training to the sailors who operate the critical systems covered by this contract."

Work will be performed in various ship homeports throughout the world. If all options are awarded, the work is expected to be completed by April 2019. The Norfolk Ship Support Activity in Virginia is the contracting activity.

Statements in this release, other than statements of historical fact, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve risks and uncertainties that could cause our actual results to differ materially from those expressed in these statements. Factors that may cause such differences include: changes in government and customer priorities and requirements (including government budgetary constraints, shifts in defense spending, and changes in customer short-range and long-range plans); our ability to obtain new contracts, estimate our costs and perform effectively; risks related to our spin-off from Northrop Grumman (including our increased costs and leverage); our ability to realize the expected benefits from consolidation of our Gulf Coast facilities; natural disasters; adverse economic conditions in the United States and globally; and other risk factors discussed in our filings with the U.S. Securities and Exchange Commission. There may be other risks and uncertainties that we are unable to predict at this time or that we currently do not expect to have a material adverse effect on our business, and we undertake no obligations to update any forward-looking statements.


AMSEC LLC is a subsidiary of Huntington Ingalls Industries. With approximately 2,000 employees in 27 locations nationwide and overseas, AMSEC is a full-service supplier to the Navy and commercial maritime industry, providing naval architecture and marine engineering, naval ship systems assessments, maintenance engineering, waterfront maintenance support, acquisition program support, shipyard industrial engineering and C4I installation and support services. AMSEC also provides life-cycle integrated logistics services, including technical manual development, provisioning documentation, spare parts management, training development and delivery, and software development.

About Huntington Ingalls

Huntington Ingalls Industries (HII) designs, builds and maintains nuclear and non-nuclear ships for the U.S. Navy and Coast Guard and provides after-market services for military ships around the globe. For more than a century, HII has built more ships in more ship classes than any other U.S. naval shipbuilder at its Newport News Shipbuilding and Ingalls Shipbuilding divisions. Employing more than 38,000 in Virginia, Mississippi, Louisiana and California, HII also provides a wide variety of products and services to the commercial energy industry and other government customers, including the Department of Energy. For more information, visit:

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