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Austal Limited (ASX: ASB) announced that the United States Coast Guard has exercised contract options with its Austal USA subsidiary valued at US$314 million. The approval covers long lead time material (LLTM) orders for three additional Offshore Patrol Cutters (OPCs), representing the fourth through sixth vessels in the program. The funding also includes logistical supply items for two cutters.
The original OPC contract, awarded to Austal USA in June 2022, covers the detailed design and construction of up to 11 vessels with a potential total value of US$3.3 billion. To date, Austal has been awarded two OPCs and LLTM for a third, prior to these latest options.
“These early awards reflect the strong partnership that has quickly developed between the Coast Guard and Austal USA teams, and provide an important sign of intent for OPCs 3–6,” said Austal Limited CEO Paddy Gregg.
Construction of Austal USA’s first OPC, Pickering (WMSMS 919), is progressing, with keel laying scheduled for December. Work on the second vessel, Icarus (WMSMS 920), began in early August.
The U.S. Coast Guard describes the OPC acquisition program as one of its highest investment priorities. The 360-foot cutters will bridge the gap between the larger national security cutters (418 feet), which operate in the most challenging ocean environments, and the smaller fast response cutters (154 feet), which patrol closer to shore.
Designed to replace the aging 270-foot and 210-foot medium endurance cutters, the OPCs will feature advanced technology and enhanced endurance. They will serve as the backbone of the Coast Guard’s offshore fleet, carrying out missions such as law enforcement, drug and migrant interdiction, search and rescue, and other homeland security and defense operations.
Each cutter will be capable of deploying independently or as part of task groups, serving as mobile command and control platforms during surge operations, including hurricane response and mass migration events. Additionally, the OPCs will support U.S. Arctic objectives by safeguarding emerging commerce and energy activities in Alaska.
