Austal USA to Build 2 More Towing Ships Under $156M Navy Contract

Austal‘s shipbuilding business in Mobile, Alabama, has secured a four-year, $156.1 million contract modification to build two additional towing, salvage and rescue vessels for the U.S. Navy.

The fixed-price-incentive modification exercises options for the production of the T-ATS 13 and T-ATS 14 ships and covers special studies, engineering and industrial services and provisioned items orders, the Department of Defense said Friday.

Austal USA will perform work in Mobile, Alabama; Chesapeake, Virginia; Jacksonville and Boca Raton, Florida; and other supplier locations through January 2026.

Naval Sea Systems Command awarded the contract modification on a sole-source basis and will obligate the exact contract amount in fiscal 2022 shipbuilding and conversion funds at the time of the award.

The Navy awarded Austal USA a potential $385.1 million contract in October 2021 to design and build the T-ATS Navajo-class vessels with a multimission common hull platform designed to tow heavy ships.

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