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Defence contracts

Austal USA Awarded US$2 Million Contract for US Navy's Next Generation Logistics Ship

Strategic Insights

— 1 min read

Austal USA, a leading manufacturer of steel naval ships, has secured a significant contract to design and develop the United States Navy's Next Generation Logistics Ship (NGLS) program. Worth US$2 million (~ A$2.8 million), the contract requires Austal USA to create a new baseline design and conduct trade studies for the Navy's newest logistics ship. This development reinforces Austal USA's capabilities in steel naval ship design and construction, building on existing projects such as the Light Amphibious Warship (LAW) program and the Towing, Salvage and Rescue (T-ATS) ships contract.

Key Takeaways:

  • Austal USA has been awarded a US$2 million (~ A$2.8 million) contract to design and develop the United States Navy's Next Generation Logistics Ship (NGLS) program.
  • The NGLS program aims to create a new class of medium-sized, at-sea supply ships to support small surface combatants and future naval assets.
  • Austal USA's experience in completing major naval vessel contracts, such as the Independence-class Littoral Combat Ship (LCS) and Spearhead-class Expeditionary Fast Transport (T-EPF) programs, provides a strong foundation for the NGLS design.
  • The NGLS fleet will have the mission of re-fuelling, re-arming, and resupplying naval assets, including Littoral Combat Ships (LCS) and frigates.
  • Austal Limited Chief Executive Officer Paddy Gregg emphasized the significance of the contract, stating it demonstrates Austal USA's capabilities and commitment to steel naval ship design and construction.
  • The contract adds to Austal USA's existing projects, including concept design work for the US Navy's Light Amphibious Warship (LAW) program and the latest construction contract for up to five Towing, Salvage and Rescue (T-ATS) ships.

Statistics:

  • US$2 million: The value of the contract awarded to Austal USA for designing and developing the NGLS program.
  • A$2.8 million: The approximate Australian dollar value of the contract, based on the exchange rate.
  • US$2 million (~ A$2.8 million): The amount allocated for Austal USA's design studies, trade studies, and baseline design creation.
  • 5: The maximum number of Towing, Salvage and Rescue (T-ATS) ships for which Austal USA has secured a construction contract.

Sources:

  • Austal Limited
  • "Austal Limited. (2023, April 7). Austal USA Awarded US$2 Million Contract for US Navy's Next Generation Logistics Ship." ASX: ASB.

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