Austal USA wins $72.5M maintenance contract for US Navy’s LCSs

Defense company Austal USA has been awarded a $72.5 million contract by the US Navy to perform maintenance on littoral combat ships (LCSs) deployed to the Western Pacific, Indian Ocean, and the countries and ports therein. 

As informed, the maintenance deal is a firm-fixed-price, indefinite-delivery/indefinite-quantity contract for emergent repair and continuous maintenance, on the multiple Independence-class LCS deployed to the Western Pacific.

Work for an initial 24-month base period will begin in January 2022 and will be completed by December 2026 if all further options are exercised, according to the company. The contract value could increase to $215.9 million if options for further periods contained in the contract are exercised by the US Navy.

Austal Limited Chief Executive Officer Patrick Gregg said building Austal’s support business has been a key plank of the company’s growth strategy, and the deployed LCSs contract adds to Austal’s recent inclusion in the Sustainment Execution Contract panels in both San Diego, California, (SEC West) and Mayport, Florida, (SEC East), as well as the company’s pending lease of a ship repair facility in San Diego.

Over the last four years, Austal USA’s service and support business has grown in size and scope with continued investment from the company.

In September 2020, Austal USA purchased additional waterfront, facilities and equipment along the Gulf Coast in Mobile, Alabama.

The new Austal USA West Campus ship repair facility includes 15 acres of waterfront property, a pier front capable of mooring vessels up to 300 metres, a 20,000-ton Panamax-class floating dry dock, 28,000 square metre outdoor fabrication space, and 10,000 square metres of undercover repair facilities.