22/12/2014 - 15:23

Austal to pick up $14m contract

22/12/2014 - 15:23

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Shipbuilder Austal says it will be awarded a $US14.4 million contract modification in support of the US Navy’s Littoral Combat Ship program.

Austal to pick up $14m contract
Austal's littoral combat ship.

Shipbuilder Austal says it will be awarded a $US14.4 million contract modification in support of the US Navy’s Littoral Combat Ship program.

Austal will provide engineering and design services, as well as affordability efforts to reduce littoral combat ship acquisition and lifecycle costs.

Work will be conducted in Mobile, Alabama and Pittsfield, Massachusetts, and is expected to be completed by December next year.

“Fiscal 2013 shipbuilding and conversion (Navy) funding in the amount of $US4 million will be obligated at the time of award and will not expire at the end of the current fiscal year,” Austal said in a statement.

In addition, Austal said it would also be awarded a basic ordering agreement by the US Navy to conduct post-delivery test and trial work on littoral combat ships.

The scope of work includes planning, engineering and material procurement.

Shares in Austal were 2.08 per cent higher at $1.47 per share at the close of trade.

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