iscover
Australian shipbuilder Austal Limited has announced that the United States Coast Guard has exercised contract options worth US$314 million (AU$480 million) for the supply of long-lead materials and logistics support under the Offshore Patrol Cutter program.
The options cover procurement of critical materials for Austal USA’s fourth, fifth and sixth Offshore Patrol Cutters (OPC), as well as logistics supply items for two of the vessels. The OPC program, awarded to Austal USA in June 2022, includes detail design and construction of up to 11 cutters with a potential value of US$3.3 billion (AU$5.05 billion).
To date, the United States Coast Guard (USCG) has formally awarded Austal USA two ships, along with long-lead materials for a third.
Austal CEO Paddy Gregg welcomed the announcement, saying the awards reflected growing confidence in Austal’s role as a key partner for the US Coast Guard.
“These early awards reflect the strong partnership that has quickly developed between the Coast Guard and Austal USA teams and provide an important sign of intent for OPCs 3–6,” Gregg said.
Construction of the first Austal-built OPC, USCGC Pickering (WMSMS 919), is progressing in Mobile, Alabama, with keel laying scheduled for December. Work also began on the second cutter, USCGC Icarus (WMSMS 920), in August.
The 110-metre OPCs are designed to form the backbone of the US Coast Guard’s future offshore fleet. Intended to replace the ageing Medium Endurance Cutters, the OPCs will provide a significant boost in capability, particularly in law enforcement, counter-narcotics, migrant interdiction, fisheries patrols, environmental protection and search and rescue.
Each vessel will have a range of 10,200 nautical miles at 14 knots, a 60-day endurance, and the ability to operate independently or as part of larger task groups. They will also be equipped with command-and-control facilities, allowing them to serve as forward-deployed platforms for surge operations including hurricane relief, humanitarian response and mass migration events.
Importantly, the cutters are expected to play a growing role in the Arctic, where the US is seeking to expand presence and oversight in response to melting sea ice, increased shipping traffic and resource exploration.
Austal USA has been a long-term partner of the US Navy and Coast Guard, having already delivered 19 Independence Class Littoral Combat Ships and 16 Spearhead Class expeditionary fast transport vessels.
The company is currently diversifying its US operations, having expanded into steel shipbuilding with a new advanced manufacturing facility in Mobile, Alabama. The OPC program is seen as a cornerstone of this transition and a critical long-term pipeline of work for Austal USA’s workforce of more than 4,000 employees.
For Australia, the program underscores Austal’s status as a major defence exporter and a rare example of an Australian company playing a leading role in large-scale US defence procurement.
The US Coast Guard plans to acquire at least 25 OPCs in total, with the first tranche of 11 allocated to Austal USA. The remainder are expected to be competed in future phases.
