MOBILE, Ala. – Austal USA announced it has signed a contract with Master Boat Builders to fabricate modules for the U.S. Navy’s Navajo-class Towing, Salvage, and Rescue Ship (T-ATS) program. The contract is part of a memorandum of understanding signed between the two companies in late 2025 and establishes Master Boat as a key subcontractor contributing to the construction and delivery of critical vessels that enhance the Navy’s and the Trump Administration’s push to diversify and strengthen the domestic shipbuilding industrial base through distributed production.
The partnership between the two Alabama-based shipyards reflects a significant milestone for Master Boat as it expands its participation in government defense shipbuilding programs. Under the agreement, Master Boat will provide specialized shipbuilding support and fabrication services that will contribute to the construction of advanced naval vessels designed to perform a range of missions including open-ocean towing, salvage operations, humanitarian assistance, and environmental response.
“Master Boat has proven itself as a capable and reliable partner, and this contract is a natural next step in our collaboration,” said Gene Miller, Interim President of Austal USA. “By distributing module fabrication to a qualified yard right here on the Gulf Coast, we’re expanding throughput, reducing schedule risk, and strengthening the industrial base that supports our warfighters. This is the model the Navy has asked the industry to pursue, and we’re delivering on it.”
Under the contract, Master Boat will fabricate two T-ATS hull modules at its Coden, Alabama, shipyard, located approximately 30 minutes from Austal USA’s Mobile facility. The modules will be constructed to Austal USA’s production design and specifications, and through the collaboration, Master Boat will gain valuable experience working within U.S. Navy technical standards and production requirements of large-scale programs. The partnership also supports workforce development and strengthens regional shipbuilding capacity along the Gulf Coast. Upon completion, the modules will be transported to Austal USA’s Mobile shipyard for final erection and outfitting.
“This contract is a direct result of the partnership we built with Austal USA last year, and it validates what we’ve been saying all along – regional shipyards like ours can take on complex defense work and deliver,” said Garrett Rice, President of Master Boat Builders. “We’re not competing with the major yards. We’re adding capacity that the Navy needs right now. Our proximity to Austal USA, our experienced workforce, and our new investment in dedicated defense infrastructure all position us to support this program and others that follow.”
The T-ATS program is designed to replace aging fleet ocean tugs and rescue and salvage ships with a modern, multi-mission platform capable of towing disabled vessels, conducting salvage and recovery operations, supporting diving missions, and assisting with humanitarian and disaster response. Austal USA has already launched the first two 263-foot ships in the program, demonstrating continued progress in delivering these important capabilities to the Navy. Master Boat’s role in the program contributes to the broader maritime industrial base that supports naval shipbuilding across the United States. The collaboration between regional shipyards and suppliers strengthens domestic manufacturing capacity and ensures the timely delivery of mission-critical vessels to the fleet.