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March 25, 2020 / 7:55 PM

Navy awards Gulf Island Shipyards $129.9M for towing, salvage and rescue ships

The Military Sea-Lift Command fleet ocean tug USNS Navajo passes the U.S. Coast Guard Cutter USCGC Boutwell in the San Diego Bay near the aircraft carrier USS Carl Vinson. The Navy has awarded a $129.9 million contract to Gulf Island Shipyards for two additional towing, salvage and rescue ships. Photo by D’Andre L. Roden/U.S. Navy

The Military Sea-Lift Command fleet ocean tug USNS Navajo passes the U.S. Coast Guard Cutter USCGC Boutwell in the San Diego Bay near the aircraft carrier USS Carl Vinson. The Navy has awarded a $129.9 million contract to Gulf Island Shipyards for two additional towing, salvage and rescue ships. Photo by D’Andre L. Roden/U.S. Navy

March 25 (UPI) -- Gulf Island Shipyards received a $129.9 million contract modification to construct two additional towing, salvage and rescue ships (T-ATS) for the Navy, the Department of Defense announced Wednesday.

This week's contract, which modifies a deal originally made in March 2018, also funds the performance of unique item identification and includes options for support efforts related to ship design and construction for special studies, engineering and industrial services, provisioned items orders, item identification and data rights licensing.

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The original contract includes options that could increase its total value to $522.7 million.

Work on the contract is expected to be complete by October 2022.

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