The Navy is ending its commitment to build the troubled Constellation class frigates, service secretary John Phelan announced today on social media. The move is the first of what Phelan said will be several changes designed to speed up Navy ship production.
“From day one, I made it clear: I won’t spend a dollar if it doesn’t strengthen readiness or our ability to win,” Phelan explained. “To keep that promise, we’re reshaping how we build and field the Fleet—working with industry to deliver warfighting advantage, beginning with a strategic shift away from the Constellation class frigate program.”
“The Navy and our industry partners have reached a comprehensive framework that terminates for the Navy’s convenience the last four ships of the class, which have not begun construction,” Phelan said in a video he posted on X. “We greatly value the shipbuilders of Wisconsin and Michigan. While work continues on the first two ships, those ships remain under review as we work through this strategic shift.”
The Navy first announced in 2020 that it had picked Marinette Marine in Wisconsin, a wholly owned subsidiary of Italy’s Fincantieri, to build the Constellation class, which was to be based on an off-the-shelf design. Construction of the USS Constellation began in August 2022. The Navy currently has a total of six of the ships on order, out of what was expected to be an initial tranche of at least 10 of the frigates. The first example was slated to be delivered in 2029, however, Phelan’s decision means the last four ships in this class will no longer be built.
As we have noted in the past: “Major changes to the Constellation‘s configuration compared to its parent Franco-Italian Fregata Europea Multi-Missione (FREMM) have already led to serious delays and cost increases, and there are growing questions about the program’s future. A key program goal had been to take an in-service design that would only need relatively minor modifications to make it ready for Navy use, which would help keep the work on schedule and budget. The opposite has now happened.”
The design changes have also contributed to major delays and cost growth. The original plan was for USS Constellation to be delivered in 2026. The Navy had also been aiming for a unit cost of $1 billion, or potentially even less, as production of the frigates ramped up. More recent estimates have put the price tag for each of the ships at around $1.4 billion.
In an exclusive interview with The War Zone in April from the sidelines of the Sea Air Space conference in Maryland, Mark Vandroff, senior vice president of Government Affairs at Fincantieri Marine Group, confirmed that little progress had been made on the first frigate of the class.
“First ship is under construction up in Marinette, roughly 10 percent done,” Vandroff said at the time. We’re “working to finalize the design with the Navy. That has been progressing. We’ve made a lot of progress in the last year, and we expect to have the functional design wrapped up here in late spring, early summer.”
“What I would say is, with the Navy, we’re converging the design,” Vandroff added when asked specifically for an update on changes to the Constellation class design from the parent FREMM. “You know, we’re responsible for producing the functional design. The Navy has to approve the functional design. So, as we go back and forth to get our design to be fully approved by the Navy, we’re converging on that final design.”
A big part of the problems with the Constellation class were the constant design changes, which prompted concerns about expected performance.
As far as what comes next, Phelan didn’t offer any specific examples.
“Shipbuilding is a foremost concern,” he posited. “The Navy needs ships, and we look forward to building them in every shipyard that we can. A key factor in this decision is the need to grow the fleet faster to meet tomorrow’s threats.”
“This framework,” he continued, “puts the Navy on a path to more rapidly construct new classes of ships and deliver the capability our war fighters need in greater numbers and on a more urgent timeline. This is an imperative, and I hope to have more to share very soon.”
We’ve reached out to the Navy for more details.
Update: 5:03 PM Eastern –
A senior Navy official offered some additional context about what might come next.
“The Navy will work with Congress in the coming weeks to seek the reappropriation of a portion of the unspent frigate funds on more readily producible ships in Marinette,” an official confirmed to us. “We do hope to retain the unspent frigate funds, as I mentioned, and have them reallocated to other ships that can be built in Marinette and delivered to the fleet faster.”
Update: 5:16 PM Eastern –
Fincantieri provided the following statement on the program cancellation.
“As part of a general fleet review launched by the U.S. Navy, aimed at transitioning towards a future model focused on technological excellence, manned and unmanned vessels, and long-term sustainability, Fincantieri and the U.S. Navy have reached a significant agreement that provides for reshaping the future of the Constellation class Program, currently under construction at Fincantieri Marinette Marine (FMM), in Wisconsin. In this framework, Fincantieri is consolidating its strategic partnership with the Navy, confirming its role as a key player in defining the future of American maritime defense through advanced industrial capabilities and long-term investments.
Working closely with the U.S. Navy, the Group will help deliver new classes of vessels. Fincantieri is expected to receive new orders to deliver classes of vessels in segments that best serve the immediate interests of the nation and the renaissance of U.S. shipbuilding, such as amphibious, icebreaking and other special missions. Fincantieri is in fact ready to execute the contracts planned in coordination with the U.S. Navy. Entering the future and in alignment with the Group’s industrial capabilities and potential, Fincantieri will support the U.S. Navy as it redefines strategic choices in the Small Surface Combatants segment, manned or unmanned.
Considering the above, the agreement encompasses the continuity of work for two Constellation class frigates currently under construction and provides for the discontinuity of the contract for the four other Constellation class frigates already under contract, reflecting the evolving strategic priorities of the U.S. Navy. On top of the aforementioned award of future orders, in order to cover the above, the agreement indemnifies Fincantieri Marine Group on existing economic commitments and industrial impacts through measures provided by the U.S. Navy, and as a result of the contractual decision made for its own convenience.
This new arrangement guarantees continuity and workload visibility for Fincantieri’s personnel and the Wisconsin System of Yards – a vital pillar of the U.S. maritime industrial base – capitalizing on the investments and expertise developed to date. Over the past years, Fincantieri has invested more than $800 million in its four U.S. shipyards, including Marinette, Green Bay, Sturgeon Bay, and Jacksonville with the aim of ensuring maximum production efficiency, flexibility, and technological innovation. These investments have enabled the consolidation of an advanced industrial supply chain, capable of meeting the U.S. Navy’s new priorities, including rapid delivery, modularity, and scalability of naval platforms.
Fincantieri Marine Group currently employs approximately 3,750 highly skilled workers in the United States, having recently increased its workforce by 850 workers to meet demand and strengthen its industrial base. This significant expansion underscores the Group’s commitment to supporting the local economy and the broader national maritime supply chain.”
In addition, George Moutafis, CEO of Fincantieri Marine Group, also weighed in.
“The agreement reached with the U.S. Navy marks a new chapter in our strategic partnership, built on mutual trust, a shared vision and commitment to excellence. The path forward defined on the Constellation class program provides for the necessary stability for our teams and the entire Wisconsin System of Yards, allowing us to continue investing in innovation and skills. As the Navy transitions to new vessel types, we stand ready to support their evolving needs, leveraging the strength of our American facilities and the expertise we have fostered. Our investments in the U.S. shipyards are a testament to our long-term vision: to be a cornerstone of the U.S. maritime industrial base and a driving force to sustain the momentum of the national shipbuilding renaissance, the American shipbuilding renaissance.
In the future development model, Fincantieri positions itself as one of the reference shipyards for the U.S. Navy, confirming its strategic role in supporting the Navy’s evolving needs. The Group is looking forward to working with all stakeholders in the supply chain on the execution of the new redefined path forward, further developing the skills and expertise cultivated in its American facilities and supporting the sustainable growth of the sector.”
This is a developing story.
Contact the author: howard@thewarzone.com
