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Austal USA Books $516M Navy Contract Modification for Ocean Surveillance Ship Construction

Austal USA has secured a four-year, $516.5 million modification to a U.S. Navy contract to provide materials required to build the lead vessel in the service branch’s new class of ocean surveillance ships.

The modification exercises an option for ordering long lead time material and completing detail design and construction of the lead T-AGOS 25 class ship, the Department of Defense said Thursday.

Forty-two percent of work will occur in Mobile, Alabama, and the rest will take place in Louisiana, New Jersey, Connecticut, Ohio, Pennsylvania, Alabama, Virginia, Delaware and various locations across the U.S.

Naval Sea Systems Command will obligate the exact modification amount using the Navy’s fiscal 2024 shipbuilding and conversion funds.

An Austal USA-led industry team is contracted to design and build a maximum of seven ocean surveillance vessels for the Navy under a potential $3.2 billion contract awarded in May 2023.

The T-AGOS 25 ships will be designed to collect underwater acoustic data in support of the Navy’s Integrated Undersea Surveillance System mission.

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