Navy extends Austal USA contract for work on littoral combat ships

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Austal USA LLC, based in Mobile, recently received a contract extension with the U.S. Navy to continue “emergent repair and continuous maintenance on the fleet’s littoral combat ships deployed to the Western Pacific and Indian Oceans and the countries and ports therein.”

Austal was granted a $48 million modification to a previously awarded contract, bringing the company a step closer to an overall, multi-year $216 million deal if all options continue to be exercised.

The recent modification exercises Option Year Two.

Austal is the builder of the Independence class of littoral combat ships, while a consortium led by Lockheed Martin is the Freedom-class producer. The multi-purpose warships can be designed for a wide variety of missions, including anti-submarine, mine countermeasures, surface warfare and special missions.

The exercise of this option will bring the current value of the contract to $166 million. However, the original contract included one 24-month base period beginning with three additional 12-month option periods, which if all are exercised, will bring the total value to almost $216 million.

Continued work under the updated deal was slated to begin in January and is expected to be completed by December. If all options are exercised, the contract will be completed by December 2026.

Work will be primarily performed in Singapore “with a percentage that cannot be determined at this time” in countries and ports within the Western Pacific and Indian Oceans.

Naval Supply Systems Command Fleet Logistics Center Yokosuka, Site Singapore, is the contracting agency.

Troy Turner is the editor and senior consultant for AlaDefense.com. He can be contacted at [email protected].

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