Austal USA has received a potential $385.1 million contract to finalize the design and begin the construction of the U.S. Navy’s Navajo-class Towing, Salvage and Rescue Ship.
The Mobile, Alabama-based shipbuilder will initially build two T-ATS vessels under a $144.6 million fixed-price-incentive modification to a previously awarded contract and may construct up to three additional units if the military service exercises options, the Department of Defense said Tuesday.
The Navy awarded the company an initial $3.6 million T-ATS functional design contract in June.
In a separate announcement, Austal noted that the acquisition program for the Navajo class will represent its first steel shipbuilding work with the service branch.
T-ATS vessels will be constructed with a common hull structure to support multiple naval missions such as towing heavy ships, the company added.