Austal wins $584 million LCS 28 contract

Austal wins $584 million LCS 28 contract Austal

JUNE 26, 2017 — Austal (ASX:ASB) reports that it has won a contract worth up to $584 million to build the Independence Class Littoral Combat Ship LCS 28 for the United States Navy.

In a stock exchange announcement, Austal said "the 127 meter frigate sized LCS28 will be the 14th LCS constructed at Austal's U.S. shipyard in Mobile, Alabama and represents a continuing vote of confidence in Australia's design and shipbuilding capability for large naval vessels."

Austal CEO David Singleton called the announcement "further proof that Australian industry can compete on the world stage."

"We won this award following a direct competition with the Freedom Class LCS which says much for our cost efficiency on this program," he said. "Austal's work on the LCS program at our advanced Module Manufacturing Facility (MMF) has seen efficiency gains of 20 per cent with an ambitious target of 35 per cent set for the end of the build cycle."

The Pentagon announcement of the award noted that the $584,200,000 fixed-price-incentive firm target contract for the construction of a littoral combat ship (LCS) "also includes options for the construction of additional LCS, class services, and post-delivery availability support. The Navy expects to release a competitive solicitation(s) for additional LCS class ships in future years, and therefore the specific contract award amount for these ships is considered source selection sensitive information."

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