Austal, US Navy agree on adjustment to T-ATS shipbuilding contract

Austal said it reached an agreement with the United States Navy to resolve its request for equitable adjustment (REA) relating to the towing, salvage, and rescue ship (T-ATS) program at the company’s Alabama shipyard.

The program, awarded in September 2021, was Austal’s first steel shipbuilding contract for the US Navy. It began as a fixed-price incentive contract worth $145 million for two vessels (T-ATS 11 and 12). Options exercised later increased the order to five ships (T-ATS 13 to 15), bringing the total contract value to $380 million.