A Gulf Island Fabrication subsidiary has won a potential $522.7 million contract to design and construct up to eight ships based on current commercial towing offshore models.
The contract awarded to Louisiana-based Gulf Island Shipyards has an initial value of $63.6 million to fund the first Towing, Salvage and Rescue Ship and includes options for the construction of seven additional T-ATS vessels, the Defense Department said Friday.
Work will take place in Louisiana, Virginia and Norway through September 2020.
The Naval Sea Systems Command received five offers for the project through a competitive procurement on FedBizOpps.
DoD noted the service branch will use fiscal 2016 shipbuilding and conversion funds for the initial award.
T-ATS will be designed to operate as the Navy’s primary open ocean towing vessel and support its salvage and submarine rescue operations.