Austal to continue to maintain US Navy LCS vessels

The US Navy has exercised $74.4 million (US$48 million) of additional options under a previously awarded contract for shipbuilder Austal to perform maintenance on Littoral Combat Ships (LCS) deployed to the Western Pacific, Indian Ocean, and regional countries.

The original 2021 contract to maintain the vessels was for US$72.5m to perform the sustainment works, with the ability to increase the contract to US$215.9 million if all options were awarded.

This recent contract award exercises Option Year Two brings the current value of the contract to US$166.4m.

The 127 metre long trimaran vessels were originally constructed by Austal at its shipyard in Mobile, Alabama.

Austal CEO Paddy Gregg said the exercise of the options reflected the quality of the work that
Austal had performed to date.

Gregg said: “An expanded sustainment business is a key component of Austal’s growth strategy.

“Repeat orders are a proof point that we are undertaking this sustainment work safely and
efficiently.

“Providing maintenance service in-theatre in the Western Pacific rather than returning
vessels to home port provides both cost efficiencies and strategic benefits to the US Navy.”

Work will begin in January 2025 and is expected to be completed by December 2025.

Work will be primarily performed in Singapore with a percentage in countries and ports within the Western Pacific and Indian Oceans.

Individual task orders will be subsequently funded with appropriate fiscal year operations and maintenance funds at the time of their issuance.

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