In 2021, Austal USA, Mobile, Ala., contracted with the Navy to build two Towing, Salvage and Rescue Ships (T-ATS) for $145 million. As the process went forth, options were exercised and the number of T-ATS grew to five boats and swelled the worth of the contract to more than $350 million.
As the process went on, shipyard officials realized that the contract didn’t have enough money in it to build five boats. Consequently, Austal filed a Request for Equitable Judgement in 2024.
Although no specific price was released, it was announced this week that a compromise was reached by the shipyard and the Navy. In short, no additional money will be forthcoming; however, the shipyard will only be building three T-ATS instead of five.
