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US Navy awards Austal AU$779 million contract modification for ASW capability

The US Navy has awarded Austal USA a contract modification for the construction of the T-AGOS 25, the lead ship of the T-AGOS ocean surveillance program, valued at AU$779 million.

The US Navy has awarded Austal USA a contract modification for the construction of the T-AGOS 25, the lead ship of the T-AGOS ocean surveillance program, valued at AU$779 million.

The confirmation follows an announcement on 19 May, where the company was awarded a US$113,906,029 fixed price incentive (firm target) and firm-fixed-price contract for detail design of the Auxiliary General Ocean Surveillance Ship T-AGOS 25 Class for the US Navy, the company said in an ASX market announcement.

The 19 May contract included options for detail design and construction of up to seven units of the class.

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The company outlined that the contract modification exercises an option for ordering long lead time materials, which will enable the design and construction of the lead ship.

According to a release from the company: “The contract modification provides for further payment as part of the overall contract.”

“If all options are exercised, the cumulative value of the contract is US$3,195,396,097.”

The capabilities are used for anti-submarine warfare missions, where they provide a platform for passive and active anti-submarine acoustic surveillance.

They are operated by the United States Military Sealift Command.

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