The following is text of news release from the U.S. Department of Defense and Gulf Island Fabrication:
(WASHINGTON) — Gulf Island Shipyards LLC has been awarded a $129.9 million firm-fixed-price modification to previously awarded contract N00024-18-C-2207 to exercise options for the construction of two additional towing, salvage and rescue ships (T-ATS) and for the performance of unique item identification on the T-ATS 6-class program.
This represents the Navy’s execution of its fourth and fifth options for Gulf Island’s construction of five T-ATS vessels that will be built in the company’s facility in Houma, La. The Navy has remaining options for three additional vessels.
"We are honored that the Navy has exercised the options for two additional vessels. This is great news for our employees in Houma, La., as it will provide additional stability during these uncertain times. We look forward to continuing our partnership with the Navy as we focus on safely building quality vessels,” said Richard Heo, Gulf Island's president and chief executive officer. “These projects support our ongoing efforts to diversify our backlog beyond offshore oil and gas and provide valuable underpinning work for our Houma team into 2021 and 2022.”
Work will be performed in Houma, La. The contract also includes options for associated support efforts related to the ship design and construction for special studies, engineering and industrial services, provisioned items orders, unique item identification and data rights license. Work is expected to be complete by October 2022. Fiscal 2020 shipbuilding and conversion (Navy) funding in the amount of $129.9 million will be obligated at time of award and will not expire at the end of the current fiscal year.
The Naval Sea Systems Command, Washington, D.C., is the contracting activity.