Mobile, Ala., Nov. 24, 2021 (GLOBE NEWSWIRE) — Austal USA has received a contract from the U.S. Navy to provide services and support for Littoral Combat Ships (LCS) deployed to the Western Pacific and Indian Ocean. This is the third major U.S. Navy service contract for Austal USA following the company’s significant investment in its service business and service centers in Mobile, Ala., San Diego, and Singapore over the last four years.
The $72.5M single award, indefinite-delivery/indefinite-quantity contract provides for emergent repair and continuous maintenance for littoral combat ships deployed to the Western Pacific and Indian Ocean, and the countries and ports therein. If all options are exercised the contract will be for five years and bring the total value to $215.8M. This award, which supports Navy requirements within the Western Pacific and Indian Ocean, complements recent awards for Littoral Combat Ship repair and maintenance on the east and west coasts, the Sustainment Execution-East and Sustainment Execution-West contracts. In addition to the three major contract awards, Austal USA recently announced the approval of a lease for a waterfront repair and maintenance facility in San Diego. This provides Austal the capability to support both variants of the Littoral Combat Ship globally.
“We’ve made it clear to our customer that we are committed to the continued service and support of the LCS throughout its lifecycle,” Austal USA President Rusty Murdaugh said. “We’ve demonstrated this commitment through our continued investment in our people, processes, and facilities – and our customer has responded with confidence.”
Currently, the U.S. Navy has multiple Independence-variant LCS deployed to the Western Pacific. This contract positions Austal USA to be the prime contractor for all continuous and emergent maintenance on the LCS as they transit and operate in the region.
In 2017, Austal USA established a service center in Singapore adjacent to the Changi Naval Base to support deployed LCS and Austal-built Expeditionary Fast Transports. 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 2018, the company expanded its presence in San Diego adding more engineering and technical expertise to support the continued delivery of the LCS homeported in San Diego.
In September 2020, Austal USA purchased additional waterfront, facilities, and equipment along the Gulf Coast in Mobile, Ala. The new Austal USA West Campus Ship Repair facility includes 15 acres of waterfront property, a pier front capable of mooring vessels up to 1,000 feet, a 20,000-ton Panamax-class floating dry dock, 300,000 square feet of outside fabrication space, and 100,000 square feet of covered repair facilities.
Austal’s overall investment strategy includes its new construction business as the company is on schedule to complete a new state-of-the-art steel production line in April to support future U.S. Navy and U.S. Coast Guard steel ships.
Wall St Business News, Latest and Up-to-date Business Stories from Newsmakers of Tomorrow