US Coast Guard Boosts Austal Contract by US$314M for Offshore Patrol Cutters
Austal Limited secures a significant US$314 million contract option from the US Coast Guard, advancing the Offshore Patrol Cutter program with orders for three additional vessels.
- US Coast Guard exercises US$314 million contract options with Austal USA
- Options cover long lead materials for 4th, 5th, and 6th Offshore Patrol Cutters
- Original contract for up to 11 cutters valued at US$3.3 billion
- Construction underway on first two cutters, Pickering and Icarus
- Cutters designed for multi-mission roles including Arctic operations and law enforcement
Austal's Growing Role in US Naval Shipbuilding
Austal Limited, Australia's leading shipbuilder, has received a substantial boost from the United States Coast Guard with the exercise of contract options valued at US$314 million (A$480 million). This latest development allows Austal USA to procure long lead time materials for three additional Offshore Patrol Cutters (OPCs), marking the 4th, 5th, and 6th vessels in the program.
The OPC program, originally awarded in June 2022, is a cornerstone of the US Coast Guard’s strategy to modernize its offshore fleet. With a potential total contract value of US$3.3 billion for up to 11 cutters, Austal USA is firmly positioned as a key player in this critical national security initiative.
Progress on Construction and Strategic Importance
Construction is already underway on the first two cutters, Pickering (WMSMS 919) and Icarus (WMSMS 920), with the keel laying for Pickering scheduled for December. These 110-metre vessels are designed to operate beyond 12 nautical miles from shore, fulfilling a variety of missions including law enforcement, drug interdiction, migrant interdiction, and search and rescue.
Beyond their immediate operational roles, the OPCs are also intended to support broader US national security objectives. Their extended range of 10,200 nautical miles at 14 knots and 60-day endurance enable deployment in diverse environments, including the challenging Arctic region. Here, they will assist in regulating emerging commerce and energy exploration activities, underscoring the cutters’ strategic versatility.
Implications for Austal and the Defence Sector
CEO Paddy Gregg highlighted the strong partnership between Austal USA and the Coast Guard, noting that the early contract awards signal confidence in the program’s trajectory. For Austal, this contract extension not only secures near-term production activity but also reinforces its reputation as a trusted defence prime contractor in the US market.
With shipyards spanning Australia, the United States, the Philippines, and Vietnam, Austal continues to leverage its global footprint to deliver advanced naval vessels. The OPC program exemplifies the company’s ability to meet complex defence requirements and sustain long-term contracts with international partners.
As the OPC fleet expands, Austal’s role in supporting US maritime security and broader geopolitical interests is set to deepen, offering a compelling growth avenue amid evolving defence priorities.
Bottom Line?
Austal’s expanding OPC contract cements its strategic footprint in US naval shipbuilding, setting the stage for sustained growth and operational impact.
Questions in the middle?
- What are the detailed timelines for delivery of the 4th to 6th Offshore Patrol Cutters?
- How might potential program delays or cost overruns affect Austal’s financial outlook?
- Will Austal pursue further contract extensions beyond the current 11-cutter program?
