The ASX-listed defence company has been awarded a new contract to support the US Navy’s LCS fleet.
Austal USA has confirmed its receipt of a second Sustainment Execution Contract (SEC) from the US Navy, enabling it to bid for repair, maintenance and modernisation work as a prime contractor, in support of all littoral combat ships (LCS) homeported in Mayport, Florida.
This new deal could see Austal provide sustainment support on both the east (SEC East) and west (SEC West) coasts of the US, with the shipbuilding firm recently authorised to bid for work on LCS vessels based out of San Diego, California.
“With the SEC East and SEC West contract awards, Austal USA is now able to support both the Independence and steel-hulled Freedom Class littoral combat ships, on both the west and east coasts of the United States,” Austal Limited CEO Paddy Gregg said.
“Both the SEC East and West contracts come on top of Austal USA’s recent expansion of sustainment capability in Mobile, which includes the recent additional waterfront property, covered vessel repairs facilities and a 20,000-tonne floating dry dock.”
Austal is among seven companies to be awarded contracts to support sustainment execution efforts in Mayport, Florida, which include:
- Colonna’s Shipyard Inc;
- East Coast Repair & Fabrication;
- Epsilon Systems Solutions;
- General Dynamics NASSCO-Mayport;
- North Florida Shipyards Inc; and
- Tecnico Corp.
The multiple award contract is expected to have a maximum ceiling value of approximately US$965 million ($1.3 billion).
Each contract has an estimated ordering period of five years, expected to conclude in August 2026.
SEC East is the latest of a number of US Navy contracts awarded to Austal in recent months.
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: US Navy awards LCS contract to Austal]