Austal USA announced that it received a new U.S. Navy contract to build ocean surveillance ships, a deal with a potential value of more than $3 billion.

According to information released by the Mobile shipyard, the contract covers “detail design and construction” of up to seven ships in the TAGOS-25 class. Austal will be the prime contractor, working with L3Harris Technologies, Noise Control Engineering, TAI Engineering and Thoma-Sea Marine Constructors.

“The Austal USA team is excited to support the U.S. Navy with this critical program. We have enjoyed our long partnership with the Navy in delivering aluminum ships and we are honored to continue that relationship in delivering high-quality steel ships on schedule and on budget,” Austal USA President Rusty Murdaugh said. “This contract award was enabled by our continual focus on our people and our facilities. The Austal USA workforce is proud of our role in providing for the Nation’s defense by delivering these ships to the Navy.”

According to www.navalnews.com, TAGOS ships “provide a platform capable of theater anti-submarine acoustic passive and active surveillance” and support the mission of the Navy’s Integrated Undersea Surveillance System.

According to a report from the Congressional Research Service, the new TAGOS-25 ships will replace a fleet of five older TAGOS ships based in Yokohama, Japan. The potential value of the contract, if all seven ships are built, is $3.195 billion.