Austal has been awarded a new time and material (T&M) contract to support the US Navy’s Virginia-class nuclear-powered fast-attack submarine programme.

The contract has been awarded by General Dynamics Electric Boat (GDEB).

As part of this T&M award, Austal will work to support the structural assembly and fabrication of the Virginia-class submarines.

The latest contract has been awarded to Austal as part of the previously announced effort to support GDEB’s work in expanding the US Navy’s submarine industrial base (SIB).

According to Austal CEO Paddy Gregg, the old contract to provide training to the staff has acted as one of the key drivers for the latest contract.

Gregg added: “This style of contract is recognition of Austal’s shipbuilding expertise and provides important revenue diversification and expansion.”

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The company is further expecting that the latest contract award will generate a potential revenue of up to $25m for Austal.

In December last year, Austal confirmed the beginning of work on the US Navy’s Virginia-class as well as the future Columbia-class nuclear-powered submarine fleet, under a wider strategic partnership with GDEB.

The contract required Austal to build and integrate command and control systems modules and electronic deck modules for the Virginia-class submarines and the future Columbia-class ballistic submarines.

Austal said that the associated work also aimed to expand the production capacity of the Navy’s SIB.

Meanwhile, GDEB, under strategic partnership with Austal, has also been providing on-the-job training to ensure that the associated workforce can fulfil all the quality assurance standards for various skilled trades.

In December 2022, GDEB also secured a $5.13bn contract to facilitate advance procurement activities for the Columbia-class submarines.