Austal Limited announced Austal USA has been awarded its first steel vessel construction contract by the United States Navy, a USD 145 million (AUD 198.5 million) build of two Towing, Salvage, and Rescue ships (T-ATS 11 and 12). The contract modification establishes options for up to three additional T-ATS ships, which, if exercised, will bring the total cumulative value of the contract to USD 385 million (AUD 528.6 million). Austal was initially awarded a USD 3.6 million contract by the United States Navy for the functional design of the Navajo-class T-ATS vessels. Overnight awarded the USD 145 million (AUD 198.5 million) fixed-price incentive (firm target) contract modification, to include the detailed design and construction of two T-ATS 11 and 12, as well as the option for the additional ships. The T-ATS contract is the first steel ship construction program awarded by the United States Navy to Austal USA and will be the first program to be delivered in the new steel shipbuilding facilities nearing completion at the shipyard in Mobile, Alabama.