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Austal USA has been awarded a structural assembly fabrication contract by General Dynamics Electric Boat in support of the US Navy Virginia Class submarine program.
The time and material contract was announced publicly on 27 January and is expected to provide potentially up to US$25 million revenue for Austal USA.
Austal USA has previously provided construction and outfitting of command and control systems, and electronic deck modules for Virginia and Columbia Class programs with General Dynamics Electric Boat.
As part of the partnership, General Dynamics commenced on-the-job training efforts with Austal USA in April 2022.
Austal chief executive officer Paddy Gregg said the previous contract to train staff was a key enabler for the current award.
“This style of contract is recognition of Austal’s shipbuilding expertise and provides important revenue diversification and expansion,” Mr Gregg said.
Earlier this month, Austal Limited outlined a strong financial outlook for the future with more than $108 million in potential early-stage contracts including work on an autonomous patrol boat for the Royal Australian Navy (RAN).
It also announced it has been awarded three contracts with a total value of $300 million in support of projects for the RAN, US Navy, and the Trinidad and Tobago Coast Guard in June last year.
Virginia Class submarines have been a major topic of discussion this month regarding the AUKUS agreement to bring nuclear-powered submarines to Australian shores. US Democratic Senator Jack Reed and Republican Senator James Inhofe have advised US President Joe Biden against plans to sell or transfer Virginia Class submarines to Australia ahead of its own US Navy requirements.
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