Mobile-based shipbuilder Austal USA will build $3.3 billion in new Offshore Patrol Cutters (OPC) for the U.S. Coast Guard, a federal judge ruled this week, according to court documents.

Austal had been awarded the contract to build up to 11 of the vessels after Eastern Shipbuilding, headquartered in Panama City, Fla., had received a contract to build the first four cutters in what the Coast Guard intends to be a 25-ship program.

OPCs are designed to “bridge the capability” between the Coast Guard’s flagship National Security Cutters — built exclusively at Ingalls Shipbuilding in nearby Pascagoula, Miss. — and its Fast Response Cutters.

In June 2022, after Austal’s bid to build the additional 11 cutters was accepted by the Coast Guard, however, Eastern filed suit in the U.S. Court of Federal Claims, saying the government failed to follow its own guidelines to award the contract based “best value,” rather than lowest bid and “unreasonably ignored material risks” in Austal’s proposal.

Eastern claimed the Coast Guard ignored the non-price factors, which it said were “significantly more important than price” based on the language of the RFP, instead awarding the contract to Austal’s lower bid. Eastern claimed its bid was superior under technical factors including past performance and lower risk.

Eastern was seeking to have the court order the Coast Guard to award the 11-ship contract to Eastern or to have the two proposals reevaluated and the contract then awarded on a “fair, consistent and reasonable basis,” according to the court filings, many of which were heavily redacted or sealed to protect the two companies’ proprietary information.

Tuesday, however, Chief Judge Elaine Kaplan rejected Eastern’s arguments, confirming the $3.3 billion contract for Austal.

In addition to the OPC contract, Austal is currently under contract for several other vessels, including the U.S. Navy TAGOS-25 ocean surveillance ship, Landing Craft Utility (LCU) vessel, Spearhead-class Expeditionary Fast Transport (EPF), Navajo-class Towing, Salvage and Rescue ship (T-ATS), Expeditionary Medical Ship (EMS), Auxiliary Floating Dry Dock Medium (AFDM), and Independence-variant Littoral Combat Ship (LCS) programs.

The OPC program is one of the Coast Guard’s highest priorities, with the oldest of its medium endurance cutters now 59 years and the newest 32 years. In all, the Coast Guard intends to build 25 of the cutters to replace 28 aging ships.

In June, Austal announced plans to add an additional 2,000 jobs to its workforce and expand facilities on the Mobile waterfront.