Austal chosen for potential $3B Navy contract

Ships will be built on Austal's new steel shipbuilding line

The TAGOS ship at sea.

Austal USA has been selected as prime contractor to design and build up to seven ocean surveillance ships for the U.S. Navy. The initial contract is valued at $113.9 million, with a potential value up to $3 billion.

The Auxiliary General Ocean Surveillance Ship T-AGOS 25 Class ships perform passive and active anti-submarine acoustic surveillance and support the Integrated Undersea Surveillance System.

Ships will be built on Austal’s new steel shipbuilding line, which opened last year.

“The Austal USA team is excited to support the U.S. Navy with this critical program. We have enjoyed our long partnership with the Navy in delivering aluminum ships and we are honored to continue that relationship in delivering high-quality steel ships on schedule and on budget,” Austal USA President Rusty Murdaugh said. “This contract award was enabled by our continual focus on our people and our facilities. The Austal USA workforce is proud of our role in providing for the nation’s defense by delivering these ships to the Navy.”

Austal opened its steel shipbuilding line in mid-2022.

Anthony Harris, president of maritime for L3Harris, added, “As the electronic and propulsion systems integrator, we’re excited to be a partner on the Austal USA team to develop the next class of TAGOS ocean surveillance ships. Our strong partnership with Austal reinforces our commitment to delivering advanced, surveillance-capable platforms to meet the U.S. Navy’s mission requirements.”

- Sponsor -

In addition to L3Harris Technologies, Austal has teamed with Noise Control Engineering (NCE), TAI Engineering (TAI), and Thoma-Sea Marine Constructors (TMC). According to the Department of Defense contract announcement, 42% of the work will be performed in Mobile and 3% in nearby Semmes, with additional work performed in Louisiana, New Jersey, Connecticut, Ohio, Pennsylvania, Virginia, and Delaware.

If all contract options are exercised, work will continue through 2034.

The latest Alabama business news delivered to your inbox