Aust boatbuilder wins US Army contract

A regional NSW firm has won a contract worth up to $US259 million to supply small boats to the US Army.

The boats are specialised bridge erection vessels, used to push pontoons into place to form temporary bridges.

Under the deal, worth about $A290 million, the US subsidiary of Port Macquarie marine engineering firm Birdon will supply up to 374 of these vessels, an updated version of a vessel supplied to the Australian Defence Force.

Birdon managing director Jamie Bruce said the contract showed small Australian firms could compete with established international players.

"The tender process for US defence contracts is among the most competitive in the world and to win this one, Birdon beat off a number of globally recognised suppliers," he said in a statement.

"That's a testament to the expertise and ingenuity that exists in our defence industry and manufacturing sector generally."

Birdon was initially awarded the contract last November but a losing US bidder lodged a protest. That was dismissed this month.