Austal Wins Contract, Partners With SSAB

Austal USA of Mobile has been awarded a $72.5-million firm-fixed-price contract for emergent repair and continuous maintenance of littoral combat ships deployed to the Western Pacific and Indian oceans, and countries and ports therein, Business Alabama reports. The contract includes a 24-month base period beginning in January 2022 with three additional 12-month option periods, which, if exercised, would bring the contract total to $215.9 million. Work will primarily be performed in Singapore. Austal has been building the littoral combat ship in Mobile since 2006 and was awarded a U.S. Navy contract for the repair, maintenance and modernization for all of them homeported in Mayport, Florida. This followed a service contract for support of littoral combat ships based on the U.S. West Coast (BBN #54 and 55).
Additionally, Austal has partnered with Mobile- and Sweden-based SSAB to provide metal for the first steel ships it will build for the U.S. Navy. Austal’s Mobile shipyard will source various types of steel plating from SSAB. SSAB operates a mill in Axis and would aid Austal in fulfilling its T-ATS contract, which is worth $144 million to design and construct two towing, salvage and rescue ships. Austal could also go on to build more (BBN #62). “SSAB not only provides us with quality steel, but also great flexibility due to its location adjacent to us here in Mobile,” Austal USA President Rusty Murdaugh said. “The ability to work quickly and in-person with them on current and future steel requirements by the U.S. Navy and Coast Guard is an asset to Austal that will support our business and economic growth in our community.” The estimated value of the partnership with SSAB was not announced.