Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Austal awarded $63m contract from US DoD

Austal has announced that the US Department of Defense (DoD) has signed a US$43.36 million ($62.7 million) contract with the company’s US division.

Austal has announced that the US Department of Defense (DoD) has signed a US$43.36 million ($62.7 million) contract with the company’s US division.

The Title III Agreement – made out under the Defense Production Act (DPA) – looks to maintain, protect, and expand US domestic production of steel shipbuilding capability and capacity through capital projects that will be executed over the next 24 months, beginning this month.


The DoD has entered into the agreement with Austal USA as part of the national response to COVID-19, which has seen Washington emphasise the importance of domestic supply chains. 

It is likely that Austal will match the DPA agreement funding, which would take the total investment to circa US$100 million. These investments will also have long-term benefits for US Navy shipbuilding while accelerating pandemic recovery efforts in the Gulf Coast region.

Using funds authorised and appropriated under US coronavirus stimulus package – the CARES Act – Austal said that this investment "will protect jobs and bolster the local economy in a region hit hard by the COVID-19 pandemic and ensure critical capabilities are retained in support of US Navy operational readiness".

Austal USA is based in Mobile, Alabama, which is the principal place of performance. Earlier this year, the division delivered its 11th littoral combat ship (LCS), the future USS Kansas City (LCS 22), to the US Navy.

The scope of this agreement is still to be clearly defined but subject to agreement with the DoD, Austal intends to use the funds to commence investment in the development of additional capacity for steel naval vessel construction at the Mobile shipyard. Further details about the purpose and specific use of these funds will be released as they are agreed between Austal and the DoD in the following months.

Austal awarded $63m contract from US DoD
lawyersweekly logo

Key decision-makers and stakeholders within the defence industry will converge at the inaugural Defence Connect AIC Summit for 2021 to discuss improving Australian Industrial Capability to increase the nation's sovereign production, defence capability and resilience. Register your interest to attend today! Limited spaces available. Register your interest to attend, visit: www.defenceconnect.com.au/aic-summit

more from defence connect

Jun 24 2021
Defence extends funding for high-profile quantum computing project
After making a breakthrough in quantum computing and additively manufactured materials, two international research collaborations ...
Markforged 3D printer
Jun 24 2021
Markforged releases field-deployable industrial 3D printer
The X7 FE is a ruggedised, field-deployable industrial 3D printer for tactical response to inventory challenges in remote location...
Babcock signs tripartite agreement with UK Ukraine
Jun 24 2021
Babcock signs tripartite agreement with UK, Ukraine
The global defence firm is set to lead Ukraine’s naval capability enhancement program in co-operation with a number of industry ...