- The Navy received six offers across both competitions
- Contract performance will run through early 2028
- Fiscal 2027 other procurement funds cover most of each award
The Department of War said Friday the contracts cover the fiscal 2027 docking selected restricted availabilities of USS Cincinnati (LCS 20) and USS Canberra (LCS 30).
What Is the Scope of the Contracts?
The companies will provide equipment, labor, supervision, facilities, production, testing and quality assurance to prepare for and carry out each ship’s Chief of Naval Operations availability, which includes modernization, maintenance and repair work.
Both companies will carry out the work in San Diego.
What Are the Details of the BAE Systems Contract?
BAE’s maritime solutions business will receive $56.6 million to work on USS Cincinnati. The firm-fixed-price contract includes options that could bring its cumulative value to $60.4 million, and the Navy expects the company to complete contract work by April 2028.
The Navy will fund the contract with $56.3 million in fiscal 2027 other procurement funds, or 99.3 percent of the award, and $369,812 in fiscal 2027 operations and maintenance funds, or 0.7 percent. The operations and maintenance funds will expire at the end of the current fiscal year.
Naval Sea Systems Command, which served as the contracting activity, received two offers after procuring the contract through full and open competition on the System for Award Management website.
What Are the Details of the Austal USA Contract?
Austal USA will receive $43.4 million for the USS Canberra availability. If the Navy exercises all options, the contract’s cumulative value will reach $44.9 million. The Navy expects Austal USA to complete the work by February 2028.
Fiscal 2027 other procurement funds account for $42.5 million, or 97.8 percent, of the award, while fiscal 2027 operations and maintenance funds account for $959,885, or 2.2 percent. The Navy’s operations and maintenance funds will expire at the end of the current fiscal year.
The Program Acquisition Executive Maritime, the contracting activity for the award, procured the contract through full and open competition on the System for Award Management website and received four offers.
How Have BAE Systems & Austal USA Supported Navy LCS Sustainment?
The latest awards build on both companies’ previous work supporting the Navy’s littoral combat ship fleet. In May 2025, Austal USA and BAE Systems San Diego Ship Repair were among 17 companies that won spots on a $2.6 billion Navy contract for repair, maintenance and modernization of LCSs homeported in San Diego. That vehicle built on $419 million in contract modifications that the service awarded to 14 companies in 2023 for San Diego-based LCS support.
The Navy also issued $2.76 billion in multiple-award contracts in 2021 for sustainment of LCSs homeported in Mayport, Florida. BAE’s Jacksonville shipyard shared a contract worth up to $1.3 billion, and Austal USA was named to a separate award worth up to $965 million. That same year, Austal USA secured a potential $215.8 million LCS service contract to maintain ships deployed to the Western Pacific and Indian Ocean.
What Other Recent Developments Have Involved Austal USA & BAE Systems?
Austal USA’s latest LCS work comes as the shipbuilder faces a potential change in ownership. In August, Hanwha Defense USA offered up to $1.2 billion to acquire the Mobile, Alabama-based company, pending due diligence and regulatory approval. Austal USA also named Gene Miller president after he served as interim leader following Michelle Kruger’s retirement.
BAE Systems has continued to build its Navy ship repair portfolio. The company’s maritime solutions business received a contract worth up to $256 million for fiscal year 2026 maintenance work on USS Iwo Jima.
