The DD&C contract has an estimated value of $128m.
The company will carry out the AFDM construction work at its modern steel panel line in Mobile, Alabama.
AFDM is a Rennie-type floating dry dock with a lifting capacity of around 18,000lt. The clear deck working area of the dry dock medium is approximately 90,800ft².
The overall length of AFDM is 694ft, the breadth of the pontoon is 157ft, and the height from baseline to wing deck is 65ft.
The new AFDM will include various features to enhance maintainability and operability of the dry dock. These new additions will be based on Austal’s experience gained from owning, maintaining and operating a dry dock at its West Campus repair facility.
Austal USA president Rusty Murdaugh said: “I am proud of our Austal USA team for developing a winning proposal.
“Combined with our contract for the T-ATS programme, the AFDM award is evidence of our expanding capability and focus on delivering a diverse portfolio of solutions to our customers, from combatants to dry docks.
“We are looking forward to providing the US Navy with an exceptional floating dry dock using our lean manufacturing approach.”
Awarded through a competitive process, the latest contract is Austal USA’s second steel vessel programme for the US Navy.
Last year in October, Austal USA received a DD&C contract from the US Navy to construct two towing, salvage and rescue ships, T-ATS 11 and 12.