Posted on September 17, 2026
By Sam LaGrone
Three new shipyards have been tapped to construct seven Landing Craft Utility landing vessels as part of an overall $280 million deal to expand the production of the heavy-lift amphibious connector, the Navy announced Tuesday.
Conrad Shipyard, LLC of Orange, Texas, Master Boat Builders, Inc. of Coden, Ala., and Saronic Technologies of Brownsville, Texas, were all selected to build the LCUs, according to the Navy announcement. According to the Navy’s Fiscal Year 2026 budget documents, the service intends for the LCUs to average $25 million apiece. The Navy did not break out the awards by shipyard, but the average price per hull was around $40 million.
“Under the agreements, each shipyard will construct two or three prototype craft and refine manufacturing plans to support high-rate production. The total initial construction obligation is $280,521,389,” reads a Navy statement.
Rather than holding a competition for the contract, the Navy used “other transaction authority” to fund the acquisition from the three yards outside of the standard contract competition process. While the awards totaled more than $280 million, they did not appear in the Pentagon’s daily contract announcements.
“By selecting three distinct shipyards, the Navy is expanding its shipbuilding industrial base capacity and building a resilient “second source” of supply for landing craft,” said William Mahan, who is performing the duties of Assistant Secretary of the Navy for Research, Development and Acquisition in the statement. “Other Transaction prototype authority allows the Navy to move at the speed of relevance.”
In a statement to USNI News following the announcement, Master Boat said the shipyard was awarded three hulls with options for an additional craft.
“This award represents a major milestone for Master Boat and reflects the dedication of the skilled workforce that has built our reputation over the last 45 years,” said Garrett Rice, President of Master Boat Builders. “As we deliver these craft, we will continue investing in our people, capabilities, and Gulf Coast operations to provide the quality and performance our warfighters depend on.”
The award follows a 2023 decision for the Navy to transfer the work from the original builder Swiftships to Mobile, Alabama-based shipbuilder Austal USA in a $91.54 million deal to build three of the LCUs. The Navy terminated its 2018 contract with Swiftships in 2024, and the shipyard subsequently sued. In March, Swiftships declared bankruptcy.
The 139-foot LCU displaces 425 tons fully loaded with a Navy crew of 13, capable of transporting the equivalent of two M1A1 main battle tanks or 350 combat-loaded troops. The LCU-1700s are set to have a top speed of 11 knots and a range of 1,200 nautical miles at eight knots. The new landing craft will replace the much older LCU-1600 design that’s been in service since the 1950s. LCUs deploy with the Navy’s fleet of amphibious warships.
Austal delivered the first LCU-1710 to the Navy last month, the company announced. The shipyard has four more under construction at its shipyard in Mobile.
The program of record for the new LCUs is 32.
