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The global shipbuilding prime is one of three companies to secure a US Navy sustainment deal.
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Austal USA has been awarded a Sustainment Execution Contract (SEC), which enables the firm to bid for repair, maintenance and modernisation work on the US Navy’s littoral combat ships (LCS) based in San Diego, California.
Prior to the award, Austal could only deliver sustainment services as a subcontractor.
Austal is among two other companies to secure the firm-fixed-price contract to support sustainment execution efforts, with Virginia-based Epsilon Systems Solutions and San Diego-based Continental Maritime also receiving awards.
Austal Limited CEO Paddy Gregg said this latest contract would further develop the company’s sustainment business in the US.
“Austal USA has not only been constructing some of the most impressive warships in the United States Navy, but also providing ongoing service and support to those vessels, operating throughout the west coast of the United States and internationally,” Gregg said.
“Now, with this SEC-West contract, Austal USA is able to offer our proven support services as prime contractor to the Navy on the west coast of the United States, and across both variants of the littoral combat ship, including the steel hulled Freedom Class.”
“On top of the recent expansion of our Mobile shipyards’ vessel sustainment capability, which includes additional waterfront property, covered vessel repairs facilities and a 20,000-tonne floating dry dock, this contract positions Austal USA exceptionally well to support the US Navy, Military Sealift Command and US Coast Guard fleets.”
The SEC is the latest of several awards from the US Navy.
In June, the US Department of Defense (DOD) awarded two US Navy contracts to Austal USA, supporting the LCS and Light Amphibious Warship (LAW) programs.
The LCS deal is a modification to a previously awarded contract, which is expected to provide Austal with a total potential additional value of approximately US$44.3 million ($58.7 million).
The LCS modification involves options to deliver design services for all Independence Class LCS and the provision of the US Navy’s Integrated Data Product Model Environment (IDPME).
Meanwhile, Austal’s LAW contract involves the delivery of concept studies and preliminary design services for a class of 28 to 30 new amphibious ships to support the Marine Corps.
The services particularly relate to the implementation of Expeditionary Advanced Base Operations (EABO) — a new Marine Corps operational concept.
The US Navy aims to procure the first LAW in the 2023 financial year.
The 60-to-120-metre-long amphibious vessels are expected to provide US naval forces with a manoeuvre and sustainment capability to conduct littoral and amphibious operations.
The ships will be built to embark at least 75 US Marines with approximately 370-740 square metres of cargo area to transport weapons, equipment, and supplies to the beach or austere ports.
[Related: Austal wins new US Navy contracts]
Charbel Kadib
News Editor – Defence and Security, Momentum Media
Prior to joining the defence and aerospace team in 2020, Charbel was news editor of The Adviser and Mortgage Business, where he covered developments in the banking and financial services sector for three years. Charbel has a keen interest in geopolitics and international relations, graduating from the University of Notre Dame with a double major in politics and journalism. Charbel has also completed internships with The Australian Department of Communications and the Arts and public relations agency Fifty Acres.
