Navy to buy 3 boats from Hornbeck Offshore Services

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The U.S. Navy has agreed to buy three supply boats from Covington-based Hornbeck Offshore Services as well as retain its services to operate the boats. Together, the contracts total $132 million.

NOLA.com/The Times-Picayune reports the Navy this week awarded Hornbeck a $114 million fixed-price contract for the purchase of three blocking vessels. The company also received an $18.1 million contract for the operation and maintenance of the boats, with options to extend that service through 2025.

As part of the deal, the Navy has the option to purchase a fourth boat from Hornbeck for $38 million. If pursued, Hornbeck would receive the contract to operate and maintain that boat as well.

Including all options, the value of the contracts amounts to nearly $500 million.

Hornbeck announced a pending sale to the Navy in its fourth quarter 2014 earnings report released this month. It did not disclose a purchase price.

The company said the boats, built in 2008 and 2009, have supported Navy submarine fleets on the east and west coast of the country.

Congress recently ordered the Navy to purchase the boats if it was going to continue using them, provided an agreement could be reached, the company said.

According to summaries of the Navy contracts, the purchased boats will be based out of Kings Bay, Georgia and Bangor, Washington.

The Navy has the option to contract Hornbeck to operate the boats for an additional nine years and one 150-day period. If those options are exercised, the operating contract will total $346.8 million. Work would continue through February 2025.

Hornbeck Offshore operates a fleet of more than 60 offshore supply boats, mostly serving the oil and gas industry in the Gulf of Mexico.