Navy awards Austal USA contract for two T-ATS ships as the shipyard’s first steel construction

The Navy awarded Austal USA a $144 million contract for two towing, salvage and rescue ships (T-ATS), marking the shipyard’s first new steel ship construction.

The Navy announced the detail design and construction contract, awarded Sept. 30, on Tuesday. A majority of the work will be performed at Austal’s shipyard in Mobile, AL, and the contract includes an option for up to three additional ships that will bring the total cumulative value up to $385 million.

Austal announced this spring that it is transitioning one of its aluminum production lines into a steel line as part of a $110 million shipyard construction project. The company is set to complete construction of the steel line in April 2022.

With its new steel line, the company is planning on competing for the Navy and Marine Corps’ Light Amphibious Warship program and to be the follow-on shipyard for the Navy’s frigate program.

The Navy awarded Austal a $3.6 million T-ATS functional design contract in June.