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Billions on missiles, Austal gets new T-AGOS contract, FFG 65 ordered

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Pentagon contracts of note that were released yesterday.

Make of them what you will. Emphasis mine.

Lockheed Martin Corp., Missile and Fire Control, Orlando, Florida, was awarded a $750,552,869 firm-fixed-price contract for Lot 21 Joint Air-to-Surface Standoff Missile B-2 missiles with containers, tooling and test equipment, and spares. Work will be performed in Orlando, Florida; and Troy, Alabama, and is expected to be completed by Aug. 18, 2027. This contract involves Foreign Military Sales (FMS) to Australia. This award is the result of a sole-source acquisition. Fiscal 2023 Air Force missiles procurement funds in the amount of $737,669,116; fiscal 2023 Air Force operations and maintenance funds in the amount of $209,098; fiscal 2022 Air Force missiles procurement funds in the amount of $4,840,000; and FMS funds in the amount of $7,834,655 are being obligated at the time of award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8682-23-C-B003).

Lockheed Martin Corp., Missile and Fire Control, Orlando, Florida, was awarded a $443,760,469 firm-fixed-price contract for Lot 7 of Long-Range Anti-Ship Missile, spares, Dummy Air Training Missiles, and tooling and test equipment. Work will be performed in Orlando, Florida; and Troy, Alabama, and is expected to be completed by Jan. 18, 2027. This contract action does not involve Foreign Military Sales. This award is the result of a sole-source acquisition. Fiscal 2023 Air Force missile procurement funds in the amount of $211,058,011; Fiscal 2023 Navy weapon procurement funds in the amount of $192,036,293; Fiscal 2023 Navy research and development funds in the amount of $17,277,571; fiscal 2023 Department of Defense research and development funds in the amount of $5,760,000; fiscal 2023 Air Force research and development funds in the amount of $15,840,000; fiscal 2023 Air Force operations and maintenance funds in the amount of $1,188,796; fiscal 2022 Navy weapons procurement funds in the amount of $108,132; fiscal 2021 Air Force missiles procurement funds in the amount of $470,526; and fiscal 2021 Navy weapons procurement funds in the amount of $21,140 are being obligated at time of contract award. Air Force Life Cycle Management Center, Eglin Air Force Base, Florida, is the contracting activity (FA8682-23-C-0001).

Marinette Marine Corp., Marinette, Wisconsin, is awarded a $526,293,001 fixed-price incentive (firm target) modification to previously awarded contract N00024-20-C-2300 to exercise an option for detail design and construction of one Constellation class guided-missile frigate, FFG 65. Work will be performed in Marinette, Wisconsin (51%); Camden, New Jersey (17%); Chicago, Illinois (7%); Green Bay, Wisconsin (4%); Pittsburgh, Pennsylvania (3%); Hauppauge, New York (3%); Sturgeon Bay, Wisconsin (3%); Cincinnati, Ohio (3%); Kaukauna, Wisconsin (2%); Charlotte, North Carolina (2%); Bethesda, Maryland (2%); Millersville, Maryland (2%); and Atlanta, Georgia (1%), and is expected to be completed by December 2028. Fiscal 2023 shipbuilding and conversion (Navy) funds in the amount of $526,293,001 will be obligated at time of award and will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

Austal USA LLC, Mobile, Alabama, is awarded a $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. The contract includes options for detail design and construction of up to seven T-AGOS 25 class ships, special studies, engineering and industrial, provisional items orders, post-delivery mission system installation period, and data rights buy-out, which, if exercised, would bring the cumulative value of this contract to $3,195,396,097. Work will be performed in Mobile, Alabama (42%); Houma, Louisiana (13%); Camden, New Jersey (13%); Shelton, Connecticut (6%); Cincinnati, Ohio (5%); Grove City, Pennsylvania (3%); Semmes, Alabama (3%); Chesapeake, Virginia (2%); Milford, Delaware (2%); New Orleans, Louisiana (1%); and various locations across the U.S., each less than 1% (10%), and is expected to be completed by November 2024. If all options are exercised, work will continue through June 2034. Fiscal 2022 shipbuilding and conversion (Navy) funds in the amount of $113,906,029 will be obligated at time of award and will not expire at the end of the current fiscal year. This contract was competitively procured via the SAM.gov website, with two offers received. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-23-C-2203).

More on the T-AGOS 25 Class (Previously TAGOS[X]), via Austal:

Austal Limited (ASX:ASB) is pleased to announce that Austal USA has been 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 United States Navy. The contract includes options for detail design and construction of up to seven T-AGOS 25 class ships which, if exercised, would bring the cumulative value of the contract to US$3,195,396,097.

T-AGOS ships, operated by United States Military Sealift Command (MSC), support the anti-submarine warfare (ASW) mission of the commanders of the Atlantic and Pacific Fleets by providing a platform capable of passive and active anti-submarine acoustic surveillance. The 110 metre, steel ‘small waterplane area twin hull’ (SWATH) vessels support the Navy’s Integrated Undersea Surveillance System (IUSS) by gathering underwater acoustical data using Surveillance Towed-Array Sensor System (SURTASS) equipment.

Austal Limited Chief Executive Officer Paddy Gregg said the T-AGOS contract adds to Austal USA’s growing portfolio of steel shipbuilding programs and is a further demonstration of the US Government’s trust in Austal USA’s capabilities.  

“T-AGOS is a unique auxiliary naval platform that plays an integral role in supporting Navy’s anti-submarine warfare mission. Austal USA is honoured to be selected to deliver this critical capability for the Navy, utilising our advanced manufacturing processes, state-of-the-art steel shipbuilding facilities and our growing team of shipbuilders.

“The T-AGOS contract is a clear acknowledgment of Austal’s capabilities in steel naval shipbuilding, that includes the Navy’s Towing, Salvage and Rescue (T-ATS) ships, an Auxiliary Floating Drydock Medium (AFDM), and the US Coast Guards’ Offshore Patrol Cutters.

“These four steel naval shipbuilding projects, and our continuing successful delivery of the Independence-variant Littoral Combat Ship and Spearhead-class Expeditionary Fast Transport programs, are positioning Austal USA exceptionally well to meet the growing demands of the US Navy and Coast Guard,” Mr Gregg said.

As prime contractor for the contract, Austal USA is teaming with L3Harris Technologies, Noise Control Engineering, TAI Engineering, and Thoma-Sea Marine Constructors to deliver the TAGOS-25 program, from the company’s new steel shipbuilding facility in Mobile, Alabama.

Utilising proven, advanced manufacturing processes and innovative production techniques that incorporate lean manufacturing principles, modular construction, and moving assembly lines, Austal USA is currently delivering multiple naval shipbuilding programs and sub-contracted projects, including;

  • Independence-variant Littoral Combat Ships (17 of 19 vessels delivered)
  • Spearhead-class Expeditionary Fast Transports (13 of 16 vessels delivered, including the largest uncrewed capable vessel in the U.S. Navy, USNS Apalachicola, EPF-13)
  • Four Navajo-class Towing, Salvage and Rescue (T-ATS) Ships
  • Up to 11 Heritage-class Offshore Patrol Cutters for the US Coast Guard
  • An Auxiliary Floating Dock Medium (AFDM)
  • Elevators for the Gerald R. Ford-class aircraft carrier, USS Enterprise (CVN-80)
  • Command modules for Virginia-class Submarines (SSN)

This ASX announcement has been approved and authorised for release by Austal Limited Chief Executive Officer, Paddy Gregg.

And the one-pager on T-AGOS 25 via the Congressional Research Service:


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